In an effort to turn around the performance of struggling national carrier Kenya Airways, the National Assembly has approved the airline’s nationalization proposal put forth by Parliament’s Transport Committee.
According to a news report by the Business Daily, Parliament unanimously voted to pass the proposal on Tuesday which could lead to the establishment of an umbrella Aviation Holding Company to oversee operations at the airline.
The transport committee had suggested that the holding company should have four subsidiaries consisting of the Kenya Airports Authority, Kenya Airways, the Jomo Kenyatta International Airport and a centralized Aviation Services College to ensure efficient running of the holding company.
The committee similarly recommended that the holding company be exempted from paying excise tax on all goods including jet fuel for a period to be determined.
“The government has no option other than to move quickly and implement the recommendations as approved by the entire House without amendments,” said Transport Committee Chair David Pkosing as quoted by the Business Daily.
Nationalisation of KQ could see the Treasury pay off approximately 80,000 shareholders in the company.