Kenya Airways Chief Executive Officer Mr. Allan Kilavuka appeared before the Senate Committee on Roads, Transportation and Housing chaired by Kiambu Senator Karungo Wa Thangwa.

Meeting with management of Kenya Airways (KQ) was to deliberate on the status of the revitalization plan for Kenya Airways dubbed *__Project Kifaru_*

Mr. Kilavuka expressed optimism that the national carrier is soaring higher and higher going by the fact that Kenya Airways made an operating profit of Ksh. 10.5 billion in the year ending December, 2023.

The CEO emphasized that Kenya Airways is the leading Africa’s airline, connecting Africa to over 40 destinations worldwide and supports regional integration by linking East Africa with the rest of the continent and the globe. 

“Kenya Airways directly employs over 4,500 people and indirectly supports thousands more through its extensive supply chain.” Said the CEO.

Kitui Senator Kiio Wambua asked the Kenya Airways management led by CEO Allan Kilavuka, why the national carrier was not competitive as compared to other airlines in the world. 

The CEO said that after failure of project Mawingu, KQ adopted “Operation Pride” in a bid to reduce operating expenses and restructure the company for profitability. 

Mr. Kilavuka said that project mawingu involved selling and sub-leasing assets, retrenching employees, and appointing Michael Joseph as the board chair in 2016. 

“Despite efforts to refocus the business model and grow revenue, the airline continued to face financial struggles.” Posited the CEO. 

Although losses decreased by the end of 2017, intensive competition from Middle Eastern carriers and macroeconomic challenges called for new strategies to revive KQ’s fortunes.

In 2017, “project Safari” was introduced to address liquidity and operational inefficiencies through debt restructuring and capital reorganization. The project involved converting debt into equity, securing government guarantees, and sub-leasing aircraft. 

Chairman of the committee, Kiambu Senator Karungo Wa Thangwa asked why the airline continued to make losses doubling between 2017 and 2019.

In response to the challenges, Kenya Airways launched “Project Kifaru” a strategic plan focused on survival, stabilization, and growth. Starting in 2021, the initiative aimed to reduce fleet and operational costs,

While restructuring the airline’s routes and contracts.

The airline phased out unprofitable aircraft and routes, focusing on the cost optimization and rationalizing its network. 

Vice Chairperson of the committee, Senator Peris Tobiko urged the KQ management to improve it operations by doing cabin upgrades so that they can compete with airlines from all over the world. 

Members present were Samburu Senator Dr. Lelegwe, Laikipia Senator John Kinyua and Nandi Senator Samson Cherargei.