Jubilee leaders oppose Kenya Airways bailout

Jubilee Alliance leaders have opposed any government sponsored bailout of the national carrier Kenya Airways until those behind the mismanagement of the airline that led to its multibillion shilling losses are prosecuted.

Led by the leader of the majority in the national assembly Aden Duale, the leaders said the 29.7 billion shillings pre-tax loss recorded by the national carrier is a serious economic crime and that those responsible for the airline’s mega losses must be brought to book.

The leaders want a select committee to probe the running of Kenya Airways’ affairs.

On Friday, Treasury Cabinet Secretary Henry Rotich said preliminary indications show the government will need almost 500 to 600 million US dollars (Ksh 60 Billion) to revive National Carrier Kenya Airways that is currently facing financial crisis, due to poor performance.

Speaking at a Mombasa hotel on Friday, the CS said already a private consultancy firm has been hired to investigate the financial crisis at Kenya Airways and prepare a report within 60 days.

Rotich said the exact amount which will be spent to revive the airline services, will be determined by the report that will be tabled by the consultancy firm.

Rotich noted that changes in the management of the airline will also depend on the report.