Kenya AIrways

KQ is in a dep mess. The national carrier is a shell of its former self. The thieves have run roughshod and fleeced the company millions in a well crafted scheme which seems to be meant to run it down and then cheaply buy the airline off.

The people behind the strategy includes former CEO Titus Naikuni, current Finance Director Alex Wainaina Mbugua and 2 top State House (Office of the President) personnel.

The scheme to run down Kenya Airways started right from the Office of the then President Kibaki and involved senior OP and DoD officials. Also roped into the deal is KQ Finance Director and the current CEO. The Finance Director is said to be so deep into the corrupt deals meant to bring down KQ to its knees that he recently bought 14 very high end properties in Johannesburg with 6 of the properties being located in the affluent Sandton area.

First, they set up four offshore companies called Twiga, Amboseli, Jetspace and Samburu which knew what aircraft Kenya Airways (KQ) needed and so approached Boeing and Embraer to deliver the same. The problem is that, without investing a single cent, the owners of the companies got KQ LPOs and managed to use the same to get loans from Afro-Exim Services.

Of the KQ fleet, the Embraer E170 series are being phased and replaced by the E190s. Key individuals in the Office of the President are said to own the 5Y-KYR, KYS and KYT. Another 10 aircrafts with registrations 5Y-FFA to FFJ are said to be owned by another powerful Kenyan family which earns them more than $500,000.

Currently, none of the Dreamliners (Boeing 787s) are flying. This is because the maintenance cost is so high and the owners who have not been fully paid for the aircrafts are said to be planning to detain some of the planes in case they fly outside the country. One of the planes was recently detained in China and released only at the intervention of key State House officials.

Most of the KQ board members who are aware of the illegal happenings are pocketing up to $6million per year in kickbacks as they are promised a standing fee per hour clocked by the operational aircrafts.  The recent KPMG report does not mention the illegal withdrawals in KQ reserve accounts in London. It doesn’t even detail the wastage which the company gets by outsourcing engineering work to other airlines.

Some of the areas which have been used to get money out of KQ includes the outsourcing of various services like training, hotel and catering as well as importation of everything including toothpicks. Take the renovation of the IOCC building which is next to the Presidential Lounge at JKIA. Renovation work were so expensive and KQ ended up importing even pens, water dispensers and seats to spruce up the Engineer’s working area while what was imported could have been acquired cheaply locally.

Staff using the IOCC (International Operations Control Centre) wondered why KQ had to import water dispensers from Germany while they could get the same locally. The renovation of the building despite the company knowing very well that the building will be brought down when the new runway is being built.

There was a time KQ spent an average of Ksh 1.5million on each and every staff member on useless trainings which did not benefit the said staff members in any way. The training was compulsory and those who failed to attend were sent on compulsory leave until they took up the training at the KQ Pride Centre.

One company which benefited most from the uncontrolled KQ outsourcing is the STOIC tracking. The company installed vehicle tracking and fleet management system in KQ vehicles being used on the tarmac to control speed. The speed limit is 25 Km/h. The company was being paid Ksh 4 million per month from 2005/2006 financial year to Dec 2014 when KQ decided to stop the service having realised that it didn’t prevent the staff from exceeding the speed limit on the airport tarmac. Only KQ installed such a service in their vehicles at the airport while the likes of 540, KLM and Qatar did not see such a need.

Now KQ is not in a state to meet its financial obligations. Staff salaries are paid late and remittances for staff contributions to Union, SACCO, NSSF and NHIF are not being done in time as KQ is left to rummage through the financial mess they created to sort themselves out. In February, KQ staff salaries was only possible after IATA sent the airline its codeshare contributions.

SACCO remittance happened on 13th March and not February 20th as always. Some contractors like Jubilee Insurance knows the precarious financial situation at KQ very well but want to debts to accrue further so as they would not want to interfere with the relationship.

The bad financial decisions at KQ started after the 2009 KQ strike where Naikuni told the Cabin Crew that their work and “Cabin Crew ni kama waiter naweza kuenda Kencom na nipate wengi.” (Cabin crews are like waiters who can easily be recruited from Kencom bus stop). That was true to an extent. But consider the cost involved in training the Cabin Crew at Pride Centre. KQ charges over $3,000 for a 6 months Cabin Crew training where they only spend 3 months in class and the others just doing nothing. In fact at KQ, the staff always know that though the work is simple, KQ charges training of the staff more expensively that it would cost to train a medic locally in the same period.

Naikuni then said that he would teach the Cabin Crew a lesson resulting in the retrenchment of the over 420 cabin crew. KQ then decided to outsource the assignment of recruiting and managing the Cabin Crew to Career Directions which is owned, managed and operated by Naikuni’s long known girlfriend Lucy Mmari.

KQ was meant to save with the outsourcing but that failed to work as service quality deteriorated. KQ ended up recruiting almost 1,000 new Cabin Crew through Career Directions. The company pays the CCs only Ksh 40,000 from the previous Ksh 80,000. The difference is not a saving to KQ since the airline pays Career Directions around Ksh 120,000 per month per Cabin Crew.

KQ made no savings on the salaries and there was no need since Cabin Crew salaries was just 1.3% of the total annual cost incurred by the airline. In the meantime, now the new Cabin Crews employed through Career Directions have been made to supervise the old and mature few who remained employed directly by KQ while the mature ones earn better salaries.

With the quality of cabin service declining, complaints emerged on social media and many at times were Cabin Crew caught having sex with passengers on air or shoplifting make up for personal use (in Bombay in India). Generally, the staff who are so loyal to the national carrier decided to steal to improve on their image. It is now believed that some KQ staff might be engaging in importing contrabands to boost their income as the airline continue to suffer.

For March, KQ staff who are suppose to be paid on 20th will have to wait for the sale of a Boeing 777 aircraft registration number 5Y-KQT at a cost of $57million to be able to earn their salaries. A brand new 777-200 plane like the KQT being sold goes for just over $250million. Considering that the plane is a 2005 make, the plane being sold is almost brand new. It is however believed that some KQ technical staff might have taken some of its parts leaving the plane being sold a SHELL. But the plane already has a buyer who has paid part of the money.

According to a senior pilot, “it is just sad that KQ cannot get to enjoy flying the 777s and make money out of them immediately after fully paying for them.”

Another plane with registration ending KQS is also scheduled for sale. Of the 77-200s, only KQU and KZY are flying but might be up for sale soon. Another plane, a 777-300 with registration ending KZX is parked but sometimes serviced for Amsterdam route.

Enter the Boeing 787s aka the Dreamliners. Of the 17 staff KQ trained to handle the improved fleet, 6 never touched the KQ fleet as they were immediately poached by Qatar, Emirates and other rich and ambitious airlines. A total of 12 of the 17 Boeing Dreamliner trained staff have left the national carrier while the remaining are mulling leaving. Only one Boeing Certified engineer is left to support the Dreamliner at JKIA.

With airlines like Qatar Airways so moneyed that they are buying two Boeing 787 Dreamliners every day in CASH, this was bound to happen.

There are loud rumours within the KQ maintenance crew that the airline cannot afford to provide in-flight entertainment (IFE) in the 737-800s as the vendor who sold the system and provide maintenance services is owed so much money that they now detain any system sent to them for maintenance. KQ knows that it is suppose to provide in flight entertainment on every flight which goes for more than 5 hours. It’s just not able to provide the same.

Apart from the money owed to the vendors, KQ also owe the taxman, KRA a lot of money that the taxman once detained some equipment over a Ksh 30 million debt which has not been settled.

In the last 5 years, KQ has lost a total of 75 Engineers and employed 150 (from Nairobi Aviation) new young and inexperienced technicians (calling them engineers) who have never touched an aircraft in real life. KQ has also poached close to 40 Kenya Airforce Servicemen to boost its fleet technicians. Many of the current pilots and engineers claim that they fear for the national carrier as it is playing poker with passengers’ safety.

Another avenue in which KQ is losing money is the maintenance agreement signed with Royal Thai airline, Qatar Airways, KLM, Aviac Technologies and others. As KQ planes fly to Paris, Bangkok, Amsterdam and other destinations, someone within KQ decided to sign maintenance agreements with other airlines with experienced staff on the ground. The sad bit of this is industrywide, it is not advisable.

What happens is that the airlines or companies with maintenance agreements with KQ will always ensure that KQ planes are grounded longer for minor and inconsequential defects so that their companies can maximise their earnings. One such instance happened in Amsterdam last Monday when Kenya Airways lost a total of Ksh 47million in one flight because KLM engineers refused to clear the flight for take off over some “valve leak” which was found not to exist. When such a thing happen, KLM engineers would earn $250 per hour per Engineer or $120 per technician. This money is paid directly by KQ to the KLM accounts and is not inclusive of repair and spare parts costs which cost millions of USD. Why would KQ refuse to station own engineer in such locations and loose Ksh 47million in one instance. The practise was common in Paris when Aviac Technologies services was contracted to maintain KQ planes that 90% of the flights were always delayed or cancelled.

It is not sometimes wrong to give out such contracts but is nonsensical for KQ to give out such contracts when no one is giving them the same.

When such a thing happens, KQ is bound to pay accommodation for the affected passengers and crew. KQ is also bound to pay other costs like meals, transport and communication. When preparing an expense report, KQ staff would also sneak in some expenses which hard hard to verify like “cost of airtime.”

Expense sheet prepared by KQ staff for KQ116

KQ 116

The time to save KQ is now. The company is flying full planes and making money. The problem is that some executives have intentionally decided to kill the national carrier and launch their own. In the words of one senior executive, “KQ is not making a loss. KQ is just over spending.”

KQ’s 10 year plan were copied by airlines like Ethiopian Airlines (ET). But you can’t compare ET as it is run in a dictatorial way. You remember the ET pilot who flew a plane to Greece. Many ET crew are monitored and banned from leaving the country the moment they try to seek greener pastures elsewhere. You can’t compare how ET crew lives with how KQ is but ET is still afloat but if they still rely on the KQ plan, it will go down soon.

As KQ goes down, it is still spending almost Ksh 96 per litre of Jet A-1 fuel while the price has fallen to almost Ksh 45 per litre. KQ is bound to spend this much because it is hedging fuel and bound by the contract until the year 2017.

Though KQ has even retrenched some “overage pilots”, the fact is that they don’t have money to pay them and told them to wait for 6 months. The problem is that KQ might not be able to last for 6 months.

As KQ continue to sell properties (sold go downs in Embakassi and planning to sell headquarters) to cover costs, it is not clear how long this will be allowed to go on.

  • Jerry Brian Wafula

    I was hoping to work for KQ one day. I guess my dream might not come true. I will pray for them in church tommorow.

    • Emiliano Tonui

      The Disgrace of Africa very soon.

      • disqus_vZUJ2mulEe

        Those who pride quality, efficiency and value for their money may not care about the declining services of KQ, but rather will have a paradigm shit to Qatar and Emirates who are proving themselves to be the airlines of the century

  • onetwo

    Ati some state house operatives own some of those KQ planes? wooolololo!

  • Geza Ulole

    A heavy dossier keep the good work…

  • Aliwon

    The fish rots from the head>>

  • Kennedy Msema Kweli

    Baseless allegations. This article surely has been written by a “journalist” who has no understanding in Operations and Finance. Though I can’t deny Kenya we have very INCOMPETENT imposter leaders in dp ruto and p uhuru. GOD BLESS & PROTECT KENYA

    • Bea Houseoffashion

      So, why don’t you tell us the REAL story?

    • Mike Serengu

      Tell us the REAL story instead of yapping how it is baseless and you don’t have any facts to refute it with

      • derekdc

        There IS NO real story.. That is the point. Why should everyone except the author state facts? He is making wild allegations with no facts whatsoever.
        Go on, throw more abuse around now… You are scoring high on all your comments.

  • VICTOR

    If this be the case then I concur that Uhuru is the father of Corruption!!! This guy has done nothing but reward his cronies and malign patriots. If we continue to have him as president we are going hell in a hand basket!!!

  • Gab Billy

    This is a big scandle for real…

  • concerned clem

    Where there is smoke kuna fire. We shall not be victims but stand and fight for our national carrier to bare it’s name again.THE PRIDE OF AFRICA.!!!

  • ngosia

    May God intervene…rot rot and rot everywhere….

    • Lynch

      Leave God out of this.

  • GODFRED ABURA

    Why am I not surprised? These is Kenya!

  • tajjo

    I paid my 6 kids university fees and lived a good life in NRB through this loot, Can the certificates be used to salvage the auction if any ….Need Urgent response from Guys I left in Technical department two year ago

  • wkithi

    Let God arise,in His perfect wisdom and let the wickedness of the wicked expire. The Lord loves Kenya too much to let his people end up in disgrace just because of the uncontrolled greed and corruption of a select few.People, raise them hot prayers to the third heaven.There is nothing to fear but fear itself.If this KQ report be true,(and I don’t doubt it, it has depth and is well researched with spectacular details) them how many families are going to be devastated and ruined in ways that cannot be salvaged.Hey but what about our parliamentarians…oh sorry they are busy taking and passing bribes to care or to notice.

    • Mark Kathurima

      This article is many things but well researched is certainly bot one of them.

      • MrJagwen

        Can you still say the same after the losses that run into the tens of billions?

  • shi

    Erm that last paragraph on Safaricom doesn’t add up to me

    • Mike Serengu

      Which one?

      • Janet

        The one he edited when it was pointed out, by the way why would you run down a company so that you can own it? Doesn’t make sense at all.

    • Ngoma

      Wrong comment, wrong article or you should be in Mathare.

  • Janet

    Quite an interesting article, very cheap I must say, the language, spelling, grammar is enough to tell that most of this is untrue. Anyway at least you are getting the ‘clicks” you wanted. Oh and the way you quickly edited the Safaricom piece and replaced it with KQ. Cheap journalist or blogger here…whatever you may be.

  • joseph

    Hahahahaha..i must admit you really have nothing to do to find time to write this bullcrap..there is no registration no as KQT or KZY or whatever it is you are putting here..;Qatar airways does not have a single vehicle in JKIA ..i work for them so get your facts right…;Qatar airways does not buy aircrafts in cash coz an aircraft is not milk you buy at a kiosk..;KLM owns part of KQ ,so tell me how i will take money from my right pocket to put it in my left one..;KQ hired engineers from Nairobi Aviation…lol..and a B 777 costs $250million….This is where i die.. if its publicity you are looking..you got it.. happy now.. this is our carrier..not the best in the world but they try given the unlevel playing ground.. how about you give your MP this as a motion in Parliament.

    • Amused-Kenyan

      I agree ghis article is completely bogus full of nonsense and very malivious with not a sinhle shred of proof but KQ does have the registration 5Y-KQT (777-200) and 5Y-KZY (777-300). Kahawatungu is simply looking for clicks knowing most readers will NOT verify the junk he posted here.

      • Mike Serengu

        Go to flight radar then take a screenshot.

        • Amused-Kenyan

          Tell Alai to allow me to post the screenshots. I have tried and they keep on getting deleted!
          He doesn’t want anybody to counter the lies he posted above.
          For someone who bought almost half of his fb likes and twitter followers, I’m not surprised.

      • MrJagwen

        Are you still amused about KQ?Is Kahawa Tungu still looking for clicks?

        • Amused-Kenyan

          KQ is in very bad shape. Here we may agree.
          But Kahawatungu’s nonsense is not the reason KQ is in bad shape. I still stand on what I wrote, this article is junk!

          • MrJagwen

            What Kahawatungu wrote 4 months ago has some credibility in explaining the over KShs. 25 Billion loss. 25%of the article junk, 75% has truth and indicators to the sources of the massive losses at KQ

          • Mike Serengu

            Give us the 100% truth and point us to the 25% which is junk so that we can dismiss them factually. Who is ever 100% correct? Jesus? I bet so too.

          • Mike Serengu

            Why not give us the bare facts of why it is down? Or we should dream what those may be also because your beef is that KahawaTungu got it so right and it pains you?

    • Mike Serengu

      Ok. Educate me like someone who has never seen the inside of a classroom. Working with Qatar airways make you have information about the going ons in KQ? Who can be fooled by that? Probably someone with your level of education. And check here for relevant cost of acquiring planes. http://247wallst.com/aerospace-defense/2014/07/16/why-a-boeing-777-9x-costs-377-million/ You just know nothing about planes. Continue washing toilets in airports then think that you know anything about planes.

      • obienga

        Other than the cost of the B 777 and the registration numbers, he raises valid points. Your insults add no value to the discussion. Take for instance 5Y-KYS, 5Y-KYT which are leaded from Air Lease Corp whose customers are world wide and include airline such as United Airlines, British Airways, Air France, KLM etc. It is a US corporation and its owners can be easily identified and proven as not being who Alai dreams up. Jetscape is another company formed in 2000, these “Kenyans” must have been true visionaries because without any scrutiny by US regulators thy acquired a US public company and then had an IPO. According to Alai, these Kenyans are also engaged in fleecing Delta Airlines, Virgin Australia, Royal Jordanian Airlines among others. It takes great skill to fabricate a “credible” story, one that is truly lacking here.

        • Mark A. Kathurima

          Obienga, well put! And (suprise surprise!) all factual (regarding ALC, Jetscape et al). Refreshing…

    • Natty Dread

      [.there is no registration no as KQT or KZY or whatever it is you are putting here]

      Forgive the guy. He grew up counting cars and memorizing number plates on the roadside. Now he’s all grown up and doing the same with imaginary planes.

    • MrJagwen

      Come back and review your own comment

    • Mike Serengu

      Fool now tell me what you think because you have proven to be the fool here not KahawaTungu.

  • Beata Nzove

    This is such a long story written in wrong grammer. Eg some AREAS…..INCLUDES?! Only 3rd person singular(He/She/It) has ‘s’ in adjectives.

    • kelvin

      It’s grammar*. Just so you know.

  • Mr. Brown

    “With airlines like Qatar Airways so moneyed that they are buying two Boeing 787 Dreamliners every day in CASH, this was bound to happen.”

    ~~~~hapo umedanganya yako yote. Two boengs every day??? So over 60 last month? Are they candies?

    • Natty Dread

      Pombe inkipenya ubongo, nothing is incredible.

  • Ngoma

    I had a chance encounter with the so called Finance Director – an arrogant bastard!! I fully support CHINA for using the FIRING SQUAD on creatures looting public funds. My question is where is KLM in all this? Surely as 26% shareholders they would smell something!

  • Mark Kathurima

    Whoever you are (you don’t even have the nethers to write your real name), you have demonstrated your ignorance to us who have an ounce of common sense and who actually know the facts. You have no facts and the few that even lean towards being a half truth are so grossly misconstrued as to be mere fairytale. On top of that, your English is atrocious. Find a new career. Investigative journalism is not the forte of vapid idiots.

    • Natty Dread

      Alai’s English lessons were courtesy of Nairobi Aviation College. It does not get better than that.

    • kelvin

      Mark, instead of resorting to abuse to try and bulldoze your patronizing opinion, give us you facts. Then we will respect you for that.

    • MrJagwen

      But his assertions are turning out to be true, ha?

  • Kariuki Anthony Kiragu

    Is this guy an auditor or something?
    If so, he should get his facts right.
    For starters, he’s US $ 20,000 of the cost of the cheapest Boeing
    777

    • Mike Serengu

      he’s what?

      • kenyan

        English has really been testing the blogger and the blogees in this post. Clearly they have been pushed to the maximum of their language capabilites and should therefore simply default to mother tongue. But hey on the flip side – its not our language anyway so its never that serious 😉

  • Jerry Rawlings Otieno

    I don’t know so much about planes.. But is this guy telling the truth? I hope it’s not true

    • Ngoma

      Better believe it!

  • Ngoma

    KQ is not going down – we will pump in more money Mumias style, sing praises to Naikuni and elect him at Kajiado Governor or even President.

  • derekdc

    Feedom of Expression and the right to publish rubbish at work. It’s great.

    • Mike Serengu

      You call it so because 1. You LACK FACTS to refute what he/she wrote. 2. You probably don’t trust your brain

      • derekdc

        You know this poorly written rant to be fact?… really? Qatar buying planes with cash daily!!! Really??? Titus Naikuni’s girlfriend? how relevant is that trash to the title?
        Mike, resorting to insults simply shows you up, further proving my point… Freedom of expression and the right to publish rubbish.

        Waiting with bated breath for the next torrent of childish abuse.

    • MrJagwen

      Can you still call it rubbish after the latest revelations and losses?

  • Clement Onyango

    Let’s look at the big picture guys, this article might have some gross exaggerations and lies but let’s stop for a minute and think just “what if it was true”? KQ has been making some serious losses. Kidero has shown us how CEOs of these big companies with Government support and fake audits by the so called Big 4 can bring potentially good companies down. Mumias is now being saved with our taxes soon KQ will be. These allegations should be looked into.

    • Natty Dread

      Are we going to be considering every pile of rumours and drunkards’ tales seriously in order to sift out the 0.000001% that may have an element of truth? That is work for idlers!

      • Poseidon Ποσειδῶν

        You must be an utter idler seeing as you are whoring all over the comments.

        • Natty Dread

          What, if I may ask, are you doing whoring all over an idler’s comments? Nyani haoni kundule.

      • MrJagwen

        And the work for idlers is coming to pass

  • David Julius

    I do not know where all this is coming from but two Boeings a day? I know a car manufacturer that makes a car every 13 hours so literally, Boeing has managed to pull that off with planes! Ha! So basically, Qatar presumably has its own version of our matatu industry…of 787’s, huh? My guy, kweli kuchocha ni free!

    • Joh_nnos

      Hahahaha.

      • David Julius

        Joh_nnos…cant help it. 😀

  • Sam

    Kahawatungu blog in other words is Alai. He has been using the blog for a long time now.

  • Joe Muraya

    This is an interesting article. As for the grammatical errors, that is just cosmetic. The content is the message. As for the content, it is difficult to come up with stuff like this out of nowhere. As for its truth, only time will prove it wrong or right. As for critics of the article, none of it has been based on your side of the story. So everyone here is reduced to spectating. As for my pride as a Kenyan, anything to prevent the (perceived or actual) downfall of KQ must be an urgent measure.

    • kelvin

      Word Moraya, word. Time will tell.

      • MrJagwen

        Time has told…this post was made 4 months ago,and we have witnessed the predictions, albeit in the name of a multi-billion loss.

    • enzogu

      Well said muraya, yes we are all left to speculate. But one fact is that KQ made a huge huge loss and anyone worth his salt right now should be asking questions. This article may or may not tell much but the point is there are alot of things that need to be addressed.

  • Cabin crew having sex with passengers! Really?

    • Natty Dread

      When one is swimming in the gutter anything goes…

      Of course, the writer will not respond to questions and remarks that ask for evidence about such allegations. The next time you see them, they have concocted another 10,000 page essay to malign their own motherlands.

  • KQ is going down alright. But I do not get the part where tthe persons named will buy the airline. That is how the article started off then digressed to maintenance, ETHIOPIAN AIRLINES…really shallow article!

  • WKK

    yes KQ is going through some rough times and will continue to do so. yes there have been some bad strategic decisions made by management.But this and other articles you have written are beyond a joke and very ill informed. Some of it borders on pure bar talk!!. Clearly you are a disgruntled party in KQ, stop crying and start making a difference.

  • HD Oyola

    Wah! Awuoro. Can only say that as per now.

  • Natty Dread

    Well, the article is based on lectures and Power Point presentations from the Nairobi Aviation College course “Theory of Flying”, which Robert Alai tried to protect with his whole body and soul the other day.

    • Amused-Kenyan

      Haha, now I know where Alai got his Aviation education!

      • Natty Dread

        Yep. Alai thinks that one can walk into the Boeing shop and point at a Dreamliner and say, “I want that one in baby blue”, the way he got his BMW jalopy.

  • Mark A. Kathurima

    Incidentally, that “spreadsheet” you have shown up there is a load of hogwash. 5Y-KQX was one of KQ’s Boeing 767s, since retired. It had a passenger capacity of 216. How then, do you come up with 406 pax being paid 600€ each in Denied Boarding Compensation (DBC)? Your so-called facts are so far out that the entire article is laughable at best. It is sad that you would try and use conjecture and nonsense calculations to misinform the general public. Like I said, those of us in the know understand that you have published a dossier of drivel. Yes, go look that last word up.

    • Janet

      It could have been more than 1 flight that was disrupted as a result. I see a ferry flight which means it came back empty, chances are there were 2 flight disruptions when this happened. That notwithstanding, the guy has gotten the clicks and that’s what counts for such people.

  • chap kusimba

    I used to prefer flying KQ from Amsterdam to Nairobi but not anymore. The services have declined to the whereby, I am now flying to Entebbe to avoid KQ. I agree the article is a little sensational but as one who spends much time in the air, I cannot dismiss it of hand.

  • Chris Ochieng

    not entirely, partially true tho and lots of research needs to be done, BUT Twiga Aero Limited DOES exist here in Mauritius and guess who the shareholders are… Kenyans, and guess what they do; buy Planes and guess who they sell it to… Although I doubt KQ is going down, but there are huge deals being done this side of the woods when it comes to large corporates in Kenya

  • Chris

    Corruption and scams are strangling Kenya to death, the country is destroying itself. What was once the most beautiful country in the world with wonderful people is turning into a slum nation and rubbish tip. The citizens of Kenya have to change things fast. Only they can do it.

    • wkithi

      Its is just sad that way things are going on in this beloved nation of ours.Mps are busy raping women, taking bribes passing bribes etc and they are not the only ones on govt doing so.What is wrong with we Kenyans?Do we suffer from a self loathing.

    • Buendia

      I have expressed these same sentiments for so long.Obama said nothing new;corruption,tribalism and impunity are strangling Kenya.
      And no one is safe from the precipice we are all heading into.

  • wilfred muia

    who are the RISK Officers? cant they take a close watch on the KRIs and KPIs then compare the two.

  • kedgimibadhi

    For those who are doubting, what will you do if the prediction comes true??? This is the question we should be asking ourselves.
    Shall we be united in ensuring that those responsible are brought to account, or we will just shift the blame?
    We had Kenya steam ship operating in lake Victoria visiting all the three states, namely, Kenya Uganda and Tanzania.
    It collapsed, then followed the Kenyan railways and harbours. I would therefore, not be surprised if the only remaining one also collapses.
    In any case, at one time it was going to collapse and that is how it came to partnership with KLM.
    After all even Uchumi Super market chains and KCC which were rescued by the government a few years ago are also collapsing again.
    I would not be suprised

    • Oliver Ananda

      then came Panpaper then Mumias Sugar company and now KQ am sure many more will follow.

    • Alchess

      In shot the tales by the Author has been watered down.

  • kedgimibadhi

    Even those who run down the well organized Kenya Bus services in Nairobi and Mombasa, so as to buy it, failed to realise
    their dreams after running it down and buying its remnants. Today we have the most messed up transport system in the world.
    Corruption is fully back as it was immediately after independence. Your guess as to why this is at the moment, is as good as mine.

  • Frederick Muketi

    I am not surprised. I noticed that there was smth not all right from the inflght service, we received in my two flights in the last five days, between Jo’burg and Nairobi.

  • Alchess

    KQ Is a local Airline Jointly owned by Kenyans and Royal Dutch Airline KLM, i am sure that the partner KLM will not allow the above arrangements to happen

  • kedgimibadhi

    @Alchess:disqus you are forgetting that we are anti-Western because they have been raising questions on serious issues bordering on corrupt practices.
    Dutch is part of Western Europe. I would not be surprised when the partnership collapses and the excuse will be “it is the Western ploy” to bring
    our Country down.

    • Alchess

      They saw a booming business in KQ, personally am opposed to the partnership, i would have loved that we go it alone like Ethiopian Airline, but the partnership helped KQ from collapsing. @kedgimibadhi:disqus I am very sure that the Dutch will allow the things that this writer is saying, it cannot happen under their watch.

      • Nikita Domino

        Inderdaad 🙂

  • Mads Anyango Molgaard

    Well, i for one find the story interesting, but i also find it interesting with the error’s in the report, 47M KSH, how is the exchange suddenly above 100 so that the amount in KSH is going from 38M to 47M (lifted by almost 10M KSH (Author)) and why is some in that calculation 406 (the flight do not hold 406 passengers), while the phone cads is 203 pcs. (and by the way in a code share with KLM and flights when a flight gets delayed, all passengers gets a 10 USD phone card so that they can call home and inform about the delay… Including several other mis-informationin the article. Well, some of the things might be true, but with those facts, i don’t trust the author to much.
    Just saying don’t believe all written, but take it with a grain of Salt.

    • Dennis

      The currency on that expense sheet is in euros € not dollars $. The exchange rate is a little over 110 actually. You missed that minor detail. Just saying. But true, always take these blogs with a grain of salt.

      • Mads Anyango Molgaard

        Okay, thanks for clarifying, but with all the other errors well it not a well made article 🙂

  • Bigbosco

    Yes KQ is out Second is KPLC. What is happening at KPLC will leaving this country shaking to the core. Why do you think they are so eager harassing Kenyans to top-up their deposits to twice the monthly consumption? where are these deposits reflected on there balance sheet. Remember the deposits do not reflect actual consumption. where did they go?

    • joeken

      You are forgeting Mumias went, KPRL was switched of by Dwalle, now its KQ then KPLC.

  • lydia

    all government enterprises will soon be dead,whether we like it or not with greedy people in power thats an assurance

  • What is kenya airways doing employing those damn Arabs as pilots.Sure recipe for disaster

  • David Julius

    Bongo making a Boeing 787 Dreamliner to its complete certification takes a whole lot of time. The plane is assembled with parts being made from different locations. the interior of the plane takes even longer and the fastest they could pull up these babies given they are increasing the production lines was about 14 a month at best by the end of this decade. So, 2 a day its still far fetched!

  • David Julius

    Plus I think it is also impossible to pay up $77billion at once even if those guys are filthy rich. This is business!

    • Dreám Bongo

      Failure to communicate on my part. I didn’t mean they paid $77b upfront. I meant they made one, giant order of 150 planes, at the cost

    • Laxon Kamau

      Boeing takes roughly 80 days to make a plane, and it’s true Emirates is purchasing planes at a high rate that it has EU airlines worried. For KQ as part of project Mawingu, they target raising the number of planes from the current 50 to about 115 by 2021. Assuming the average cost is US$100 million per jet then it should cost them US$ 6.5 billion. Seems that may difficult in the current conditions.

  • Sam

    I once got an opportunity to interview with KQ an was called for the position.I resigned to take up this very promising position.On the day I reported to work the head of IT Infrastructure called me to his office and told me something has change but it will not affect my duties at work.However I was to be seconded to another IT Firm and thus KQ will be paying that firm and then that firm will be paying me less 20,000/= of the agreed amount for salary processing.I didnt think of it as a big deal then, from earning 15,000/= in a parastatal to 80,000/=(after the dedudction)…..ooh then he told me the two years contract will be split into two one year contract.After the end of one year my contract was never renewed.I think this article in into something big…!

    • Mike Serengu

      Wow

  • Eric Omwena

    Good information but like the kpmg report on mumias it came too late after poor shareholders burnt their fingers

  • Laxon Kamau

    KQ is receiving complains and bad reviews from various African countries like Rwanda, Nigeria & SA while the middle east clients say that their baggage system is wanting. Seems the transition period between Kibaki govt to the current govt was an open door for the corrupt looters to siphon public funds. After 10 yrs of growth from 2003-2012 making it the best airline in Africa, now KQ risk losing their clientele to Ethiopia.

    • joeken

      lets just suport Ethiopian airline n leave Kq to die.

  • Andre

    let your dumb arse comment now that they’ve made a 25 illion loss

  • bling

    KQ will be back, just as it recovered from similar situation in 1991 when it was technically insolvent. Let’s ponder: 1) Profit or loss is an accounting reality that may not always reflect the market position of a business. KQ still retains significant brand equity that assures it of some healthy business patronage for years to come. Case in point: Global e-retailer Amazon consistently reports losses, and only reported a profit this year, yet continues to dominate its space, is loved by customers and its share price continues to be firm. I read this huge KQ loss as a way for new CEO to ‘come clean’ and make a break with the past thro conservative accounting, so that financial results will henceforth be cumulatively better. 2) The Govt is not doing KQ a favour by extending a loan facility. The Govt has all along been the largest beneficiary of the business, by way of the handsome taxes it collects from KQ, (whether the airline makes a profit or not) for which the airline has regularly been recognised by KRA as one of the largest taxpayers in Kenya. I wish KQ were to publish the taxes they have paid to Govt in the last 15 years. Remember, KQ is losing business to Ethiopian and Middle Eastern carriers not because of their superior competitiveness but largely because they enjoy huge subsidies from their Govts, which KQ does not. There is no level playing field here. 3) As Kenyans, we can’t be borrowing and investing billions in upgrading our airports, including the upcoming Kes 55-billion Greenfield terminal, to serve foreign airlines as we kill our own. Let’s appreciate that the ‘strategic value’ of KQ to the Kenyan economy goes far beyond the ‘profit’ number. Notably, the ‘network effect’ of KQ is perhaps one of the most prolific drivers of Kenya’s tourism numbers, agricultural value-addition, logistics and trade, horticulture exports, aviation banking and insurance, to mention a few. 4) Loss and Profit go together. Perhaps we have been used to profit reports by listed Kenyan companies to the point we forget that having a bad year or two is part of business, not the end of the world. I believe the measures that KQ has announced are likely to deliver a turnaround, including the sale of non-core assets including some land at Embakasi worth about Kes 3 billion, unwinding of the fuel hedges set at $110/barrel which bet went the wrong way when fuel prices collapsed, fuel purchases at current low prices to deliver huge savings of up to 50%, disposal of aircraft which they own to be replaced by leased ones, resumption of flights to the lucrative West African routes, continued re-alignment of staff deployment to the needs of the business to rebuild morale and productivity, and the resolution of the industrial dispute with pilots and other staff. 5) KQ has a bright future on account of being a strong regional player at a time when the African airspace is being liberalised. The ‘Open Skies’ initiative and others will expand opportunity for KQ like never before. Abandoning KQ at this stage would be utter folly. As Kenyans, lets support KQ by flying KQ always. When KQ makes a profit, its ours. When it makes a loss, its ours too.

    • kihika

      That is not the point. From any economic point of view, there is now way the comeback is going to be there without a whooping effect on the economy and to the people of Kenya. And my friend in 1991 we did not have the same economic problems the world is facing now.

    • Albert

      I agree with your observations to some extent.
      Inasmuch as we expect KQ to offer some strategic and competitive advantage to Kenyan enterprise we find ourselves saddled with a corporation whose efficiencies are sorely wanting. Failure to resolve the inefficiencies is akin to driving a car with a fuel leak and wondering why your 1200cc engine guzzles like a 6500cc V12 vehicle aka ‘The Beast.’

  • kihika

    something is Wrong, was wrong but as always We are now being Reflexive… Long after the impulse

  • Philip Macharia

    Well, you saw it coming so clearly. Well, I hope someone will atleast pay for this one before we, the taxpayers, are compelled to ‘rescue’ the ‘pride of Africa’.

  • …with this kind of MAINTAINANCE records am forecasting a MAJOR CRASH …that will SEAL the COFFIN for KQ ……… its UNFORTUNATE how far GREEDY businessmen will GO!

  • Dennis Karanja

    Jambo Jet is one spin-off at the right time just like Safaricom and Telekom Kenya. Interesting eye brow raising sentiments, however it would be great to hear how the author proposes the situation is reversed.

    • Amos Aketch

      Dennis Karanja that’s not an issue. What should be done is obvious even to a first year business student. Anyone who seriously want to recerse

  • Amos Aketch

    If you were wondering why no one is taking action against the looters of KQ well now you know. Githongo was right: the current level of corruption and theft of puplic resources is unprecedented in the country’s history.

  • MrJagwen

    On your shitty face.

  • Albert

    I agree with your observations to some extent.
    Inasmuch as we expect KQ to offer some strategic and competitive advantage to Kenyan enterprise we find ourselves saddled with a corporation whose efficiencies are sorely wanting.
    First, how does KQ expect to make profits when they are more expensive than almost all other airlines on local and international routes thus causing traveller hemorrhage to other entities. I hear your argument about subsidies on other airlines and to me its hogwash. If our Govt cannot leverage its resources to cause KQ to compete globally then we MUST be OVERPLAYING the value of KQ to this Nation. (Caveat: The Kenya Govt is assumed to always act in the interests of its citizens)
    Second, The fuel hedging bit is ridiculous to say the least. Does the board at KQ function really??? How do they adopt WORST practice in this industry???
    Third, Rapid expansion in a volatile environment is a recipe for hard times. Truly if we say that we have a tourist slump in Kenya then what are we doing having KQ order for several large and brand new aircraft?
    Isn’t what KQ is doing the robbing Peter to pay Paul??

  • Albert

    Inasmuch as we expect KQ to offer some strategic and competitive advantage to Kenyan enterprise we find ourselves saddled with a corporation whose efficiencies are sorely wanting.
    First, how does KQ expect to make profits when they are more expensive than almost all other airlines on local and international routes thus causing traveller hemorrhage to other entities. I hear your argument about subsidies on other airlines and to me its hogwash. If our Govt cannot leverage its resources to cause KQ to compete globally then we MUST be OVERPLAYING the value of KQ to this Nation. (Caveat: The Kenya Govt is assumed to always act in the interests of its citizens)
    Second, The fuel hedging bit is ridiculous to say the least. Does the board at KQ function really??? How do they adopt WORST practice in this industry???
    Third, Rapid expansion in a volatile environment is a recipe for hard times. Truly if we say that we have a tourist slump in Kenya then what are we doing having KQ order for several large and brand new aircraft?
    Isn’t what KQ is doing the robbing Peter to pay Paul??
    Fourth, which corporation has ever thrived with a thoroughly demotivated workforce?
    Talk to any KQ employee bar the senior management and you’ll find a worker desirous of quitting the org.

  • Minayo Leah

    KQ has enjoyed it’s monopoly since time immemorial, it is being brought down by some corrupt war lords who do not care for it’s survival. Do this people really care how they kill employment rate in this country. Naikuni being there for that long was evident he will leave the place in shambles!

  • Sam

    A very lucrative business indeed! Can we join hands with a few investors and get something rolling!? Am just being an entrepreneur ……u know!

  • Mark

    A Very sad affair that even statehouse operatives are involved..Even leasing planes to KQ.. Shame,,shame shame.. for the so called “THE PRIDE OF AFRICA”…..!!!

  • kedgimibadhi

    doing there jobs well. Is it because they expect full protection from the state?
    KQ charge passengers operating between Kenya and Burundi up to 700 usd return ticket while ET charges up to 251 USD.
    Then Kenyan authorities stop ET from dropping passengers in Nairobi, and Kenyans operating between
    Burundi and Nairobi are forced to pay 700 usd instead of 251. How does one explain that? Why should KQ be expensive
    on every route they are plying? Is that really a strategy? Why should KQ have managers who are so arrogant to people who are
    doing there jobs well. Is it because they expect full protection from the state?

  • Julius Taliani

    Bar-talk then…when the dreamliners we’re landing…was that someone was tengenezaing his pension. How foolish I was not to take the cue and dispose off my KQ stocks. I feel Kirubi’s pain.

  • Allan Kamau

    ALLAN KAMAU LETS GET TO THE BOTTON OF THIS LETS SEE HEADS ROLL

  • Tazabi

    So bad is the corruption at KQ. That despite government officials are represented in the board and the country is relatively democratic with press freedom. That is really shocking if true.

  • Ahmed Wurie

    Interesting article but not very well written.

  • Sam Kiune

    Have you ever heard of Goldman schacs? The french guys are in it kindly read about Greece and US real estate and get the answers right. they use local dudes to gain access.

  • don’t worry. The government will bail them out with $100 billion and reinstate the same directors whom they regard as competent. wajinga ndio waliwao. shida ni sisi wajinga tutakuliwa mbaka liniiiiiiii?

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