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    Kenyan PR agency bags international award

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    Startimes land broadcast rights for Continental showpiece

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    Dandora dumpsite to produce electricity through a waste-to-energy plant model

    Reprieve for Kenya as China says this about its loans

    Reprieve for Kenya as China says this about its loans

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

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    Tatu City partners with Konza to attract investors to Kenya

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    Kenyan PR agency bags international award

    Kenyan PR agency bags international award

    Startimes land broadcast rights for Continental showpiece

    Startimes land broadcast rights for Continental showpiece

    Israel set to showcase agricultural innovations in Embu

    Israel set to showcase agricultural innovations in Embu

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Moet & Chandon ink partnership with premier restaurant Oysters & More

    Moet & Chandon ink partnership with premier restaurant Oysters & More

    Sarova introduces new brands as it diversifies into standalone restaurants

    Sarova introduces new brands as it diversifies into standalone restaurants

    Tatu City Partners with Konza to Attract Investors to Kenya

    Tatu City Partners with Konza to Attract Investors to Kenya

    LG unveils premium monitors

    LG unveils premium monitors

    Price of bread rises to Ksh55

    Price of bread rises to Ksh55

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    Tatu City partners with Konza to attract investors to Kenya

    Tatu City partners with Konza to attract investors to Kenya

    Tatu City Partners with Konza to Attract Investors to Kenya

    Tatu City Partners with Konza to Attract Investors to Kenya

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    National Bank and Octagon ink 100 billion service partnership

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    Mizizi Africa Homes voted best low cost housing developer 2020

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    Cytonn Hands Over Phase III of Comprehensive-Lifestyle Project, The Alma

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    Serviced Apartments Record Decline in Rental Yields

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    LG unveils premium monitors

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    Pesalink appoints Gituku Kirika as CEO

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    Samsung Galaxy S21 is now out,pre orders open in Kenya

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    Kenyan PR agency bags international award

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Kenyan Business Feed
  • Home
  • News
    Kenyan SMEs to benefit from Sh11 billion support from UK’s CDC Group

    Kenyan SMEs to benefit from Sh11 billion support from UK’s CDC Group

    Kenyan PR agency bags international award

    Kenyan PR agency bags international award

    Startimes land broadcast rights for Continental showpiece

    Startimes land broadcast rights for Continental showpiece

    Kenyan Scientists Discover New Coronavirus modification

    Kenyan Scientists Discover New Coronavirus modification

    Israel set to showcase agricultural innovations in Embu

    Israel set to showcase agricultural innovations in Embu

    Dandora dumpsite to produce electricity through a waste-to-energy plant model

    Dandora dumpsite to produce electricity through a waste-to-energy plant model

    Reprieve for Kenya as China says this about its loans

    Reprieve for Kenya as China says this about its loans

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Tatu City partners with Konza to attract investors to Kenya

    Tatu City partners with Konza to attract investors to Kenya

  • Markets
    Kenyan PR agency bags international award

    Kenyan PR agency bags international award

    Startimes land broadcast rights for Continental showpiece

    Startimes land broadcast rights for Continental showpiece

    Israel set to showcase agricultural innovations in Embu

    Israel set to showcase agricultural innovations in Embu

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Moet & Chandon ink partnership with premier restaurant Oysters & More

    Moet & Chandon ink partnership with premier restaurant Oysters & More

    Sarova introduces new brands as it diversifies into standalone restaurants

    Sarova introduces new brands as it diversifies into standalone restaurants

    Tatu City Partners with Konza to Attract Investors to Kenya

    Tatu City Partners with Konza to Attract Investors to Kenya

    LG unveils premium monitors

    LG unveils premium monitors

    Price of bread rises to Ksh55

    Price of bread rises to Ksh55

  • Real Estate
    Tatu City partners with Konza to attract investors to Kenya

    Tatu City partners with Konza to attract investors to Kenya

    Tatu City Partners with Konza to Attract Investors to Kenya

    Tatu City Partners with Konza to Attract Investors to Kenya

    National Bank and Octagon ink 100 billion service partnership

    National Bank and Octagon ink 100 billion service partnership

    Real Estate: Cytonn invites bids for this 4 acre piece of prime land in Kilimani

    Mizizi Africa Homes voted best low cost housing developer 2020

    Mizizi Africa Homes voted best low cost housing developer 2020

    Cytonn Hands Over Phase III of Comprehensive-Lifestyle Project, The Alma

    Cytonn Hands Over Phase III of Comprehensive-Lifestyle Project, The Alma

    32% of Kenyans to change houses over Covid-19

    32% of Kenyans to change houses over Covid-19

    Kenyan Firm awarded Most Innovative Community Developer 

    Cytonn Real Estate completes The Alma Phase 3; 120 units set for handover

    Serviced Apartments Record Decline in Rental Yields

    Serviced Apartments Record Decline in Rental Yields

  • Tech
    LG unveils premium monitors

    LG unveils premium monitors

    Pesalink appoints Gituku Kirika as CEO

    Pesalink appoints Gituku Kirika as CEO

    Samsung Galaxy S21 is now out,pre orders open in Kenya

    Samsung Galaxy S21 is now out,pre orders open in Kenya

    realme C12 and 7i now Available In Kenya

    2021: realme to release more smartphone in Kenya

    Samsung banking on technology personalisation to increase market share

    Samsung banking on technology personalisation to increase market share

    Cellulant CEO Ken Njoroge to step down in 2021

    Millions Abandon Whatsapp over new Contentious Policy, Signal, Telegram record growth

    Millions Abandon Whatsapp over new Contentious Policy, Signal, Telegram record growth

    Whatsapp to block users this February following new policy

    Whatsapp to block users this February following new policy

    Tough times ahead as taxis set to increase fares

    Tough times ahead as taxis set to increase fares

  • World Business
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    Defiant: Words such as ‘China virus’, ‘impossible Paris climate deal’ mark Donald Trump’s speech as he bids farewell to USA

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    Millions Abandon Whatsapp over new Contentious Policy, Signal, Telegram record growth

    Millions Abandon Whatsapp over new Contentious Policy, Signal, Telegram record growth

    Trump threatens to slash US funding to World Health Organization

    A year later, WHO still insists on visiting China to probe virus origin

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    F1 superstar to miss Sakhir GP after testing positive for coronavirus – Statement

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    Boeing’s 737 Max Cleared to Fly in the US After Crashes

    Guinness forced to recall contaminated brand

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    WTA Names Kenya as Africa’s Leading Tourist Destination 2020

    WTA Names Kenya as Africa’s Leading Tourist Destination 2020

    United States: Close Contest as Trump Declares himself Winner

    United States: Close Contest as Trump Declares himself Winner

  • KBF
    • All
    • Agribusiness
    • Banking
    • Insurance
    • Manufacturing
    • Opinion
    Kenyan PR agency bags international award

    Kenyan PR agency bags international award

    Kenyan Scientists Discover New Coronavirus modification

    Kenyan Scientists Discover New Coronavirus modification

    Israel set to showcase agricultural innovations in Embu

    Israel set to showcase agricultural innovations in Embu

    KCB, MoH and Kazi kwa vijana biggest advertisers in the past 5 months

    Mastercard, Unilever and KCB Bank strengthen partnership to support micro-retailers in Kenya

    Reprieve for Kenya as China says this about its loans

    Reprieve for Kenya as China says this about its loans

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Tatu City partners with Konza to attract investors to Kenya

    Tatu City partners with Konza to attract investors to Kenya

    KRA Goes After Rich Individuals, Firms Over Sh250 Billion

    Digital Services Tax a desperate move caused by bad governance

    Wairegi leaves Britam after 40 years, in-comes Tavaziva Madzinga

    Wairegi leaves Britam after 40 years, in-comes Tavaziva Madzinga

    • Agribusiness
    • Banking
      KCB, MoH and Kazi kwa vijana biggest advertisers in the past 5 months

      Mastercard, Unilever and KCB Bank strengthen partnership to support micro-retailers in Kenya

      ‘Beware of fake currency’, CBK Warns

      Diaspora remittances rose by 11 per cent to Sh341 billion in 2020 – CBK

      6.5 million register new mobile money accounts in 2020 -CBK

      6.5 million register new mobile money accounts in 2020 -CBK

      SIB banks’ foreign investment arm records mild drop in returns

      SIB banks’ foreign investment arm records mild drop in returns

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      How to join, get a loan from Metropolitan Sacco

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      Equity Restructures Ksh92 Billion Loans To cushion Customers Against COVID-19

      Equity Becomes first bank in Eastern and Central Africa to achieve trillion-shilling balance sheet

      Equity Group Appoints Christopher Newson as Non-Executive Director

      Equity Group Appoints Christopher Newson as Non-Executive Director

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      DigiTrust: ICEA Lion Group bets on technology in the rewarding money market field

      DigiTrust: ICEA Lion Group bets on technology in the rewarding money market field

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      ICEA Lion Life appoints a new CEO

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      Exposed: Insurance Company on The Spot for Fruatrating clients

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      Octagon feted in 2020 World Pension Summit Innovation Awards

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      What do you need to know before purchasing car insurance?

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      National Bank of Kenya Bags Global Recognition

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      DIB Awarded Best Islamic Bank in Kenya

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    • Opinion
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      OPINION: Managing the end-of-life of products to accelerate a circular economy in Kenya

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      Fail or win? Mixed Reactions over Safaricom’s new logo

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      OPINION: Why Safaricom’s Fuliza is a rip off!

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      Crisis as young Kenyans now embrace Crime as lifestyle

      Employment Exit Strategy: The smart way to leave job for entrepreneurship.

      Employment Exit Strategy: The smart way to leave job for entrepreneurship.

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Kenya should protect KQ to beat its rivals

by Kenyan Business Feed
June 9, 2019
in News
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Kenya should protect KQ to beat its rivals

Sunday, June 9, 2019 22:00


By STEVE NYAMOTA |

Kenya Airways plane
A Kenya Airways plane at the JKIA in Nairobi. FILE PHOTO | NMG 

In territorial competition, preferential treatment at home has a bearing on the overall performance of a business. Kenya Airways (KQ) has, however, had to bear the brunt of a shortsighted system.

The airline is responsible for about 60 per cent of overall traffic at the Jomo Kenyatta International Airport (JKIA) and contributes 83 per cent of Kenya Airports Authority (KAA)’s revenues collected at the airport.

Kenyan aviation as a whole has lost its own country’s market share over the last couple of years by 13 per cent to its competitors. From 2015 to 2018, all competing carriers in the region increased their market share — Ethiopian Airlines by 20 per cent, Qatar Airways by 12 and RwandAir by 22, all while KQ lost four per cent.

Passenger satisfaction has taken precedence and air tickets are trading at a historic low. Customers are now benefiting from an unparalleled combination of choice, competition, access and affordability. Conditions have driven these carriers to provide new and expanded services with the full support of their governments, a vital weapon that KQ has had to go to war without.

Against this backdrop, the African sky has in recent times seen new players coming up and existing ones growing aggressively, most of whom are heavily supported by their governments through protectionist measures. For instance, unlike KQ, which is 48.9 per cent owned by the government, Ethiopian Airlines, RwandAir, and the three Gulf carriers (Emirates, Etihad and Qatar) are all 100 per cent State-owned.

Considering the government stake in the carrier, it is curious that KQ gets no preferential treatment in its own hub of operation.

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Unlike competitors who enjoy government protection and subsidies, KQ spends heavily on fuel costs, handling services, maintenance and many other services it buys in other airports.

Further, when competitor planes land at JKIA, only a limited stream of income goes to KQ. Not all the airport suppliers are linked to KQ through equity or exclusivity contracts.

A carrier like Ethiopian Airlines, which was half the size of KQ in 2010, has been growing exponentially in recent years.

Ethiopia expanded Bole International Airport, raising its capacity to 22 million passengers annually. And now, still, with the help of government, Ethiopian Airlines is in the process of acquiring shares and building strategic partnerships with 10 other African airlines.

In contrast, the conditions surrounding KQ and the JKIA are alarming. The JKIA is congested, reaching its maximum capacity estimated at about 7.4 million passengers, denying Kenyan aviation a platform on which to compete favourably.

While Rwanda is building a new airport with the capacity twice their current traffic, there seems to be no major investments in expanding the capacity of the Jomo Kenyatta International Airport.

Kenyan aviation players face imminent danger of being swept out of the market by competitors who benefit from market protection or government subsidies.

Steve Nyamota is an aeronautical engineer and Kenya Aviation Workers Union branch chairman.


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]

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