Parliament pokes holes on KAA, KQ merger

Parliament on Wednesday requested for a special audit on the proposal presented by Kenya Airways (KQ) to the Kenya Airports Authority (KAA) in regards to the management of Jomo Kenyatta International Airpot (JKIA).

In a report, the Public Investments Committee also raised its reservations in the viability of the plan citing KQ’s weak financial strength.

After suspending the proposal for a planned management of JKIA by Kenya Airways, the Public Investments Committee now says the special audit will be able to unravel the viability of the deal and protect the public’s interest.

The report also cites a possible conflict of interest in the deal as KAA chairman Isaac Awuondo also heads CBA bank which belongs the KQ lenders limited who currently own shares in the airline

The report also highlighted debt owed by KQ to KAA to the tune of Ksh. 3.8 billion which it says risk being lost if the plan is carried through.

The Abdulswamad committee in its recommendations also indicates that reports that deal had the backing of the highest office in the land raised red flags on its intentions.

On Tuesday, Kenya Airways CEO Sebastian Mikosz and Transport Secretary Esther Koimet put up a spirited fight before the national assembly’s transport committee.

The duo insisting that the deal was the only way out of KQ’s financial turbulence.