sky

Kenya Airways goes full circle with 2-year nationalisation plan

Kenya will take at least 21 months to take back full control of Kenya Airways, buying out minority shareholders and converting shares held by banks into Treasury bonds, a lawmaker briefed on the transaction said. The loss-making airline, which is 48.9% govt-owned and 7.8% held by Air France-KLM, was privatised 23 years ago but sank into debt and losses in 2014. Lawmakers voted to re-nationalise it this week. "The (transport) ministry needs 3 months to think through and then give us a proposal on the aviation shareholding company and the entire structure," David Pkosing, the chairman of parliament's transport committee, said. He estimated buying out shareholders would take 18 months. Air-France KLM will have the option of selling its stake to the govt and staying on as a technical partner for the airline. <br/>