Kenya Airways has set the lowest record in the history of Corporate Kenya after recording a net LOSS of Ksh 25.7 Billion for year 2014. Enough money to build an overpass “Dual carriage” from JKIA to Waiyaki way or another Thika road Super Highway!! This is the highest ever loss in corporate Kenya since independence. This is happening when other Global airlines like Ryanair recorded 66 % profit increase in the same period!! I’m a bit hesitant to casting aspersions to the current CEO since everything was pointing red when he took over. In a nut shell, the former CEO of is the author and finisher of KQ’s loss of fortunes.
As it is, KQ and Mumias sugar, whose Boards are heavily controlled by government are doing more harm than good to us as Kenyans and much more to investors. The solution to this kind of nonsense is to fully privatize these companies. The Government should only hold minority stakes in companies and have ZERO voting power.. What is the business with a government owning companies in sectors where private sector has consistently done better? In efficient economies, governments are never in the business of business – They should act as enablers.
The best examples locally are KCB, Safaricom etc where the government has stakes but doesn’t meddle. These companies have been able to unlock all the potential optimally. In Private sector, a CEO earning Ksh 1.2 Million a Month can be sacked for a simple “corrupt” act of like forging a Ksh 4,000 lunch receipts. In GoK controlled companies, “eating” the entire company is still not considered worthy of sacking a “dedicated” officer from “our tribe”. This is the fact, we need Board and governance reforms in KQ, Kenya Power, Kengen, Kenya RE and all other government controlled companies.
The government should actually be forced to dilute their stakes or sell them. It makes more sense to all stake holders. I can’t imagine what Safaricom or KCB would be if they were not independent. I’m not against the government but business souls be left to Private sector. I’m sad, almost depressed by the bad news from KQ. The so called Pride of Africa has turned into National Shame.. It is unacceptable at best.
