Kenya Airways spending $142m annually on leasing aircraft, report shows
Transport Principal Secretary Esther Koimet (left) and KQ CEO Sebastian Mikosz at a meeting on the proposed plan to manage Kenya Airports Authority on February 26, 2019. PHOTO | DIANA NGILA | NMG
Troubled national carrier Kenya Airways spends a whopping $142 million annually to service the onerous leasing contracts it signed with financiers to acquire 20 aircraft, a new report shows.
The confidential report, which was submitted to the Transport committee of the Kenyan parliament, means servicing loans accounts for up to 11 per cent of the airline’s operating costs — way above the global average of five per cent.
