Let’s not mess up KQ turnaround efforts the way we did Rift Valley Railways
Kenya Airways planes on the taxi bay at Jomo Kenyatta International Airport, Nairobi, on March 6, 2019. The troubled national carrier proposes to have deciding voice on how the Kenya Airports Authority is run, in an effort to increase its efficiency. PHOTO | FILE | NATION MEDIA GROUP
For a transport business, logistics are straight forward: The sole responsibility of an operator is to move goods and passengers from one point to another. However, the operator’s success is determined by efficiency and pricing — factors influenced by the environment.
In 2005, the Kenya Railways Corporation (KRC) and Uganda Railways Corporation (URC) entered into an agreement to concession out the operation of the Kenya-Uganda railway in an effort to turn around the business. A concessionaire was to be granted a 25-year agreement in a deal that would see them profitably operate the railway from which both governments would earn revenues in form of concession fees paid out every quarter.
