National Aviation Management Bill Withdrawn

National Aviation Management Bill (National Assembly Bill No. 18 of 2020) seeks to provide for the nationalization of Kenya Airways.

Justin Muturi, seventh Speaker of the National Assembly of Kenya_

Kenya’s Parliament on Wednesday withdrew the National Aviation Management Bill which will have to be amended with inputs from the public.

National Aviation Management Bill (National Assembly Bill No. 18 of 2020) seeks to provide for the nationalization of Kenya Airways. 

The Bill further proposes the formation of an Aviation Holding Company to run Kenya Airways, Kenya Airports Authority (KAA) and the Kenyatta International Airport (JKIA).

The Bill was read the first time on the floor of Parliament on 30th June 2020 and committed to the Departmental Committee on Transport, Public Works and Housing for consideration.

Justin Muturi, Speaker of the National Assembly of Kenya said objections were raised regarding the process of public participation on the Bill when it was tabled for a second reading.

“I wish to inform the House that I have since received a letter from the Leader of Majority, (Amos Kimunya)  requesting to withdraw the Bill so as to enable further consultations and also to incorporate additional input from stakeholders received during public participation phase,” Muturi told Parliament that was sitting for its sixth and final Session of the 12th Parliament that commenced in August 2017.

“I direct that the Bill be withdrawn. Nevertheless, the sponsor is at liberty to reintroduce it in accordance with the provision of Standing Order 114.”

The Kenyan government owns 48.9 per cent of the national carrier and it is expected to buy out the remaining holders of 51.1 per cent of the shares. 

Air France-KLM owns an almost 8 per cent stake in Kenya Airways.

Local lenders own a 38.1 per cent stake which they acquired in 2017 after KQ was unable to service its loans of Ksh16.9 billion.

Early January, the Nairobi Securities Exchange (NSE) further extended the suspension of Kenya Airways trading of shares by 12 months stating that “operational and corporate restructure is still ongoing and the government is expected to give a clear direction on its buy-out or bail-out.”

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