Kenya Airways faces financial constraints despite efforts to grow its revenue over the years.[โฆ]CLICK HERE TO READ THE FULL ARTICLEโถ
How much do state agencies owe KQ?
KQ Chief Executive Officer (CEO) Allan Kilavuka revealed that state agencies owe the national carrier over KSh 3.54 billion in revenue.
Kilavuka appeared before the Senate Committee on Transport on Tuesday, October 8, and called for government support in collecting these funds.
โDespite efforts to refocus the business model and grow revenue, the airline continued to face financial struggles.
“The government should support us in the collection of outstanding amounts from various State agencies, which amount to KSh 840 million as of September 2024,” said Kilavuka.
The CEO said that state agencies owe the airline a huge chunk of the money, citing VAT non-refunds totalling KSh 2.7 billion as of August 2024.
Kilavuka noted that the Kenya Revenue Authority (KRA) owes the airline KSh 2.4 billion in VAT refunds as of August 2024.
Which other state agency owes Kenya Airways?
Below is a tabulated list of public entities that owe the national carrier and the amount they should pay:
| Govt entity | Amount owed to KQ in KSh |
| 1. Kenya Revenue Authority (KRA) | KSh 2.4 billion in Value Added Tax (VAT) refunds |
| 2. Ministry of Foreign Affairs | KSh 294 million in unpaid air tickets |
| 3. National Assembly | KSh 242 million in uncleared air tickets |
| 4. Parliamentary Service Commission | KSh 191 million |
| 5. Parliamentary Joint Services | KSh 30 million |
| 6. Directorate of Immigration Services | KSh 32 million |
Kilavuka further noted that as of September 2024, the countries of Nigeria, Malawi, Ethiopia and Burundi owed KQ KSh 1.4 billion.
KQ returns to profit-making course
He emphasised that government support in netting these resources will help revive the airline to a profit-making course.
Kilavuka expressed optimism that the national carrier is soaring, highlighting the operating profit of KSh 10.5 billion that the airline posted in the year ending December 2023.
Kenya Airways reported a profit after tax of KSh 513 million for the half-year ending June 2024, a major turnaround from a KSh 23.7 billion loss during the same period in 2023.
This marks the airline’s first profitable half-year results in a decade. The last recorded profit was KSh 384 million in 2014.
Kilavuka attributed the profitability to growth in the cargo sector, stabilisation of the Kenya shilling, and increased overall trafficโฆCLICK HERE TO READ MORE ARTICLES>>>
