Kenya Airways' posts first half-year profit of Ksh 513 million

Kenya Airways (KQ) incurred losses amounting to at least Sh80 million during recent demonstrations against the government’s plan to lease Jomo Kenyatta International Airport (JKIA) to India’s Adani Group.

Allan Kilavuka, the airline’s Chief Executive Officer, revealed on Monday that the flight disruptions caused by the strike significantly impacted the airline’s operations, leading to financial losses. He explained that the airline had to compensate passengers and cover the costs of rebooking flights that were delayed as a result of the industrial action.

“Strikes are extremely detrimental to us. When you consider the costs associated with time lost, rebooking, and compensation, we estimate that the one-day disruption cost us at least Sh80 million,” Kilavuka stated.

On September 11, 2024, aviation workers across three major airports in Kenya—Jomo Kenyatta International Airport (JKIA), Moi International Airport in Mombasa, and Eldoret International Airport—went on strike. Thousands of passengers were left stranded as domestic and international flights were delayed or canceled due to the walkout, organized by members of the Kenya Aviation Workers’ Union (KAWU).

The protests were sparked by concerns among aviation workers about potential job losses should the Adani Group take over operations at JKIA. However, the government has since clarified that the agreement with Adani Group will only involve the aeronautical and commercial development of JKIA, not a complete takeover of other airports or airstrips across the country.

Transport and Roads Cabinet Secretary Davis Chirchir, speaking before the Senate Roads, Housing, and Transportation Committee, reassured stakeholders that the Adani Group’s proposal is still under review and has not yet been finalized. He emphasized that the deal is limited to JKIA’s development and will not affect operations at other airports.

“The Adani Privately Initiated Proposal is strictly confined to the aeronautical and commercial development of Jomo Kenyatta International Airport,” Chirchir said. He added that the Ministry has already begun a public participation process to gather input from Kenyans and stakeholders on the proposed agreement with the Indian firm.

As negotiations continue, the strike has highlighted the concerns of workers and the broader implications of foreign involvement in key national assets, with both the government and unions grappling with the potential impact on jobs and the aviation sector.