Kenya Airways (KQ) owes the Kenya Airports Authority (KAA) KES 4.62 billion, with the airport use debt increasing by KES 377.55 million in the last year.
According to Auditor General Nancy Gathungu’s report for the fiscal year ended June 30, 2021, the amount due has increased by KES 377.55 million from KES 4.24 billion as of June 30, 2022.
The sum represents 40% of the KES 11.64 billion owed to the State airports custodian by other enterprises and airlines operating at Jomo Kenyatta International Airport, Moi International Airport, and Kisumu International Airport.
“An amount of KES 570 million is also owed by Kenya AirFreight Handling Limited, a subsidiary company of Kenya Airways Limited,” said Ms Gathungu in the report.
The KAA charges airlines for landing, takeoff, noise, emissions, parking, and use of passenger facilities, among other things. KAA’s services are critical to ensuring the aviation industry’s safety and efficiency.
The debt indicates that KQ has been allowed to continue operating without paying some basic fees at Kenyan airports.
The government owns a majority stake in the national carrier, which it has aided with a series of bailouts after it suffered multi-year losses.
Kenya Airways posted its ninth consecutive half-year loss, adding KES 15 billion to its negative equity position. The airline, which has been surviving on State bailouts since the Covid-19 pandemic, reported a KES 9.8 billion loss in August, which was a better performance than the KES 11.48 billion loss it recorded in the same period last year.
It incurred an additional KES 5.3 billion loss on hedged foreign exchange differences, bringing its total comprehensive loss to KES 14.9 billion.
Kenya Airways’ KAA debt has risen just a few months after Parliament asked the National Treasury to intervene and assist the airports’ manager in recovering KES 7.5 billion owed by the carrier in an effort to resolve the airport debt that has been a source of contention for years.
According to a report by the National Assembly’s Public Investments Committee (PIC), there was a need to engage the Treasury to expedite debt recovery because it was affecting operations.
Previously, the KAA had engaged Kenya Airways directly on the debt issue.
“The Committee recommends that the Cabinet Secretary for the National Treasury should intervene and have the amount owed to the KAA by the KQ settled,” said the National Assembly’s PIC in a report tabled in the House in June.
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