The corruption index azimio want to ignore

mkurugenzi said:
KQ was privatized 25yrs ago ie in 1996. May be you were not born then so hujui hii maneno and huyo mtu amemwambia msisome historia.

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Founded in 1977 as a government-owned entity following the collapse of the East Africa Community, KQ was the first African Airline to be privatized in 1996. Since its founding and prior to its privatization, KQ had accumulated massive financial losses and crippling debts resulting from government-backed loans issued by financial institutions. The financial losses implied a drain to the exchequer as the government was subsidizing KQ to remain afloat. Therefore, privatization and divestiture of Kenya Airways were indispensable.

The privatization of KQ in 1996 resulted in a restructuring to a 29.8% government ownership from 100% government ownership which yielded efficiency gains, improvement of service standards and a turnaround of the airline’s profits. The airline recorded a 61% growth in flights in a period of six (6) years after its privatization and a doubling of cargo and passenger traffic in a decade. The privatization had a twofold benefit to the exchequer; reduced budgetary support, and tax inflows. Privatization implied that the management was supervised by the shareholders and resulted in management focus on enhancing KQ financial efficiency.

KQ’s journey, unfortunately, has not been all smooth flying since its privatization. Despite being a private company, the government has often shouldered the burden of keeping the airline afloat. For instance, in 2017, the government bailed out KQ from a US$ 243 million debt plus accrued interest owned to the National Treasury, resulting in an increase in government shareholding to 48.9% up from 29.8%. The restructuring resulted in dilution of shareholding by KLM to 7.8%, 38.1% by consortium of local lenders, 2.4% by employee share ownership plan and 2.8% by individual shareholders.
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Ukiendelea kulamba matako sema which bank is the largest debt holder to KQ and was guaranteed of a state bailout
 
mzeiya said:
Didn't Rubis get slapped on the wrist for advantageous landing of oil products at the expense of other players
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Hii story iliisha aje? other players were complaining. Better they open the window for all to import as they can instead of giving one player advantage. Let free economics determine fuel prices.Government to come in only for quality control.
 
Ngimanene na Muchere said:
Which bank is the largest debt holder to KQ? And who will reap panono with this bail out? And which btw WAS ASSURED
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Equity 5.2B. CBA + NIC merger took their debt to 5.2B. The assurance is in order. Debt was maturing and the lenders were keen on getting their money back. The government as the largest shareholder had to guarantee to save KQ.
 
Okiya said:
Equity 5.2B. CBA + NIC merger took their debt to 5.2B. The assurance is in order. Debt was maturing and the lenders were keen on getting their money back. The government as the largest shareholder had to guarantee to save KQ.
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NIC bought Jamii Bank loan out from KQ while they were in merger talks with CBA. When they merged they came out ahead as one of the largest debt holders with the assurance from Muhoho that small bratha will not let KQ fall and they are left with that hole in the balance sheet. And why didn`t they pay tax on the merger?
 
Ngimanene na Muchere said:
NIC bought Jamii Bank loan out from KQ while they were in merger talks with CBA. When they merged they came out ahead as one of the largest debt holders with the assurance from Muhoho that small bratha will not let KQ fall and they are left with that hole in the balance sheet. And why didn`t they pay tax on the merger?
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What's the percentage of NCBA shareholding at KQ?
 
Nameless said:
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2 weeks later, he has quit the party and his position as Youth Director in DP office!!!

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