Kenya’s national airline, Kenya Airways, is seeking a public-private partnership with the Kenya Aviation Authority that will see the national carrier manage Jomo Kenyatta International Airport, the country’s largest airport, for a period of 30 years. The airline argues that most of its rivals; Ethiopian airlines, Emirates, and Qatar manage their countries’ main airports which give them an edge in business.
Private-public partnerships are the norm for airlines that manage their countries’ airports. According to a report released by KQ, the partnership will help Kenya’s aviation industry move from a defensive approach to one of healthy competition.
As per the KQ report, the agreement between Kenya Airways and JKIA is expected to drive up revenue collection for both organizations by improving operations at the airport. Enhanced operations at JKIA will lead to the growth of Kenya as a regional hub.
The report notes that through the partnership, Kenya Airways plans to establish other income streams such as a maintenance repair and Overhaul Centre, cargo and ground services facilities, fuel distribution and a training and development facility. These programs will create employment opportunities for many Kenyans.
Additionally, the partnership between Kenya Aviation Authority and Kenya Airways is expected to create synergies, increase Kenyan exports, develop industries and provide as many as 30,000 job opportunities. Part of the plan is to create a Special Economic Zone where logistics firms, warehouse providers, and distribution companies will operate.
Lastly, the partnership is expected to bring huge gains to the Kenyan economy in terms of growth in many sectors such as tourism, manufacturing, and hospitality.
