Deputy President Rigathi Gachagua had alleged that national carrier Kenya Airways (KQ) was making losses because it had been captured by the previous regime.
Gachagua, who was speaking in an interview with Citizen TV on Sunday, October 2, alleged that KQ’s loss-making streak was due to bad contracts it entered into which he said were benefiting a few individuals.
“We have had discussions with Kenya Airways and they have the highest fares on the continent and their planes are always full but they make losses. We are trying to deal with that State capture so that we can bring down the cost of the operations of the airline so that they can make profits,” Gachagua said.
However, in response to Gachagua’s remarks, KQ chairman Michael Joseph termed Gachagua’s remarks as “misleading.”
In a statement, the former Safaricom CEO refuted claims that the national carrier was under state capture saying that all the contracts made by KQ were not meant to benefit any individual in the government.
He said the airline entered into lease agreements with international companies whose end result was to benefit the airline.
“Kenya Airways would like to clarify and correct comments that have recently appeared in the media regarding its aircraft leasing arrangements,
“Leasing contracts for airlines are purely commercial business arrangements entered into by airlines and lessors worldwide. Lessors contracted to KQ or leasing of aircraft and engines are all renowned international companies that manage hundreds of aircraft leased to different international airlines across the world,” Michael Joseph said.
KQ has been hitting news headlines due to its ballooning loss-making but Joseph expressed confidence that he will turn around its fortunes by 2024 as all the strategies they implemented to turn around the airline are starting to bear fruit.
