Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 919962,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/919962/?format=api",
    "text_counter": 321,
    "type": "speech",
    "speaker_name": "Mogotio, JP",
    "speaker_title": "Hon. Daniel Tuitoek",
    "speaker": {
        "id": 13434,
        "legal_name": "Daniel Kamuren Tuitoek",
        "slug": "daniel-kamuren-tuitoek"
    },
    "content": " Thank you, Hon. Speaker, for giving me this opportunity to contribute to this Report. First, I would like to thank the Committee for putting in a serious effort to try to resolve the issue of KQ. I have looked at the Report and I note that the Committee has made some good recommendations. The Committee was essentially presented with two options. One option was to have KQ take over the JKIA and run it under the PPP model. The other option was to have several units being created, including KQ and JKIA and then centralised aviation services being brought together under one holding company. I note that KQ has been generally making progress recently under the new management. The losses have continued to reduce. However, they are still facing many challenges in terms of being competitive. One of the issues facing our country is the role of Nairobi as a hub. The competition from Ethiopia and Rwanda is becoming serious. They are attracting more and more aircraft to their airports. The JKIA is not very competitive now. This Committee was trying to find a way in which they could solve two problems, namely, help KQ and also improve JKIA as an international hub. The other challenge is that almost half of KQ’s aircrafts are leased. Most of those aircrafts were bought using syndicate loans from banks through private vehicles like Samburu and Tsavo. The ownership of these two particular vehicles is unknown although yesterday the Chairman of the Departmental Committee on Transport, Public Works and Housing said it is a bit transparent. We do not really know the owners of Samburu and Tsavo because probably this is what is making the cost of leasing very expensive. As the Committee was making recommendations, it learnt that the second vehicle is the most viable one. Through the first vehicle, where KQ takes over the JKIA, the result will be such that some of the shareholders like banks, which own 38 per cent of the shares of KQ will benefit from any injection of public funds. The reason the Committee recommended the second option where several units, including JKIA Company, are meant to manage the airport, was so that if there is any injection of public money, then it would benefit the public. So, the second option of nationalising KQ and creating other companies which are also 100 per cent owned by the Government will enable these companies to be run under one holding company wholly owned by the Kenya Government. I support that particular option. The electronic version of the Official Hansard Report is for information purposes only. Acertified version of this Report can be obtained from the Hansard Editor."
}