Kenya Airways (KQ) has announced the suspension of its passenger flights to Mogadishu, effective October 14, 2024. This decision comes due to operational challenges.
CEO Allan Kilavuka stated, “This decision was made after careful analysis and consideration in the best interest of the airline in the prevailing business environment.” He thanked the Kenyan embassy in Mogadishu and government officials for their ongoing support.
Kilavuka acknowledged that this suspension could impact the positive developments achieved so far. “We request your understanding of this unforeseen development that may reverse the positive trend and gains made so far,” he said.
During a Senate Committee meeting, Kilavuka revealed that various government agencies owe KQ Sh3.54 billion. “The Kenya Revenue Authority is yet to refund Sh2.7 billion in VAT,” he noted. He detailed the debts: “The Ministry of Foreign Affairs owes Sh294 million for unpaid air tickets, while the National Assembly has an outstanding Sh242 million.”
Kilavuka also mentioned other debts. “The Parliamentary Service Commission has not paid Sh191 million. The Parliamentary Joint Services owes Sh30 million, and the Directorate of Immigration Services owes Sh32 million.”
He stressed the importance of government support in recovering these funds. “We need assistance in collecting the overdue payments,” he urged.
Additionally, KQ seeks help from the government to repatriate Sh1.4 billion trapped abroad. “These funds are stuck due to foreign exchange controls and other restrictions,” Kilavuka explained. “Countries like Nigeria, Malawi, Ethiopia, and Burundi are part of this issue.”
The airline faces significant operational hurdles. “We are committed to providing reliable air travel services,” Kilavuka affirmed. He emphasized that the airline’s future depends on addressing these financial challenges.
Kilavuka concluded his remarks by expressing hope for cooperation. “We look forward to a collaborative effort to resolve these issues.”
