Written By Lisa Murimi
Members of the National Assembly are pushing for the creation of an Aviation Holding Company (AHC) to oversee a significant restructuring of Kenya’s aviation industry.
The proposed AHC would manage key entities, including Kenya Airways (KQ), the Kenya Airports Authority (KAA), Jomo Kenyatta International Airport (JKIA), and an Aviation Services College.
The National Assembly Transport, Public Works, and Housing Committee, chaired by David Pkosing, MP for Pokot South, highlighted that the current Project Implemented Investment Plan (PIIP) is inadequate for revitalizing the sector.
The committee recommended the nationalization of KQ, which is burdened with Sh75 billion in debt guaranteed by the government.
The proposed AHC would consist of four subsidiaries: JKIA Company, KAA, KQ, and the Aviation Services College.
The committee also recommended amendments to the Public Finance Management Act and the Public Procurement and Asset Disposal Act to grant the AHC more financial flexibility.
Additionally, the committee proposed tax exemptions, including waivers on aircraft parts and aviation fuel, to boost the competitiveness of KQ and the entire sector.
The report also called for a review of KQ’s aircraft leasing agreements and a rationalization of staff to align employment conditions across the new aviation structure.
