The government is expected to pay off debtors of the Kenya Airways.
This is after members of Parliament on Tuesday adopted a report on the nationalisation of the facility. The process of making the airport a parastatal has gained momentum following the adoption of the report, which was tabled by Transport Committee.
The airline has been facing a financial crisis following the huge debt burden it owes the suppliers. The government is now expected to assist the airline offset debts including CBA Group Sh3.1 billion, KCB Group Sh2.1 billion, Co-operative Bank Sh3.3 billion, DTB Bank Sh3.3 billion, Equity Bank Sh5.2 billion and National Bank Sh3.5 billion.
In an interview with Daily Nation, Pokot South MP David Pkosing, who is also the committee Chairman, said that the new development aims at ensuring the airline remains operational.
He noted that the airline has been on the verge of collapse following the ever-increasing debt burden but the government is ready to stand with the firm to ensure it is back to its feet.
“This is a new dawn to the country’s aviation sector and if well implemented, it will open new markets to Kenya Airways and thereby increase their income,” Mr Pkosing said, as quoted by Daily Nation.
The nationalisation of the airline has caused division in Parliament.