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Loss making KQ denies borrowing Sh125 billion from government

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Troubled and loss making national carrier Kenya Airways has denied reports that it received a loan from treasury amounting to Sh125 billion.

The carrier released the statement on Thursday in a reaction to a story published in a local daily suggesting that treasury borrowed Sh124.9 billion to help cash-strapped KQ settle another maturing loan.

“According to official data, Treasury refinanced the loan on behalf of Kenya Airways in the fourth quarter of Financial Year 2018/19. Refinancing is simply the use of one debt to repay another,” the article read.

But according to KQ, the last time they received money from the government was in the fiscal year 2015/2016.

“Kenya Airways has not received any new monies from Treasury since 2015/16 when GoK injected $217 million. All KQ operations during the turnaround period have been financed from KQ’s internally generated revenues,” reads part of their statement.

The carrier added that it was misleading that the media house could say that there has been an additional Sh125 billion from tax payers.

On Wednesday, the troubled national carrier’s half-year loss more than doubled to Sh8.56 billion, sinking shareholders into a deeper negative equity position of Sh16.18 billion.

NEW ROUTES

The airline attributed the 112 percent widening of loss to increased operating costs in the wake of its expansion into new routes and the return of two Boeing 787 planes that had been sub-leased to Oman Air.

READ ALSO:   President Kenyatta to be among passengers of KQ's first ever direct flight to USA, buys ticket

In April, Treasury took a new Sh20 billion loan to help KQ repay another loan it borrowed from African Export-Import Bank (Afrexim) two years ago.
Details of the new loan were disclosed in a report sent to Parliament by the Treasury.

The new 10-year loan was borrowed in June 2018 from Eastern and Southern African Trade and Development Bank (TDB) which replaced a similar-sized debt by Afrexim Bank that had fallen due.

The loan was among several transactions undertaken by the government and other creditors including debt-to-equity conversions to stave off collapse of the national carrier.

It will cost the government at least Sh2 billion in interest expenses and other charges, as per the terms of the debt.

By nation.co.ke

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Business

Firm that sold DP Ruto Weston hotel land speaks out

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A travel agency has defended the ownership of the piece of land on which Nairobi’s Weston Hotel stands, arguing that the title deed was acquired legally and that the airports regulator has no claim to the property.

In documents filed in court, Priority Limited says the title to the land was obtained in good faith, is legitimate and cannot be faulted through the petition or any other case.

Through the law firm of Katwa & Kemboy, the company says that being the registered owner of the parcel serves as conclusive evidence of ownership.

The company has further stated that the Kenya Civil Aviation Authority has no “worthy evidence,” to claim ownership of the land hosting hotel associated with Deputy President William Ruto.

KCAA has filed a suit in court seeking to reclaim the land and has opposed a deal between Weston and the National Land Commission (NLC) for the hotel to compensate the authority so that it can continue occupying the land.

In the case filed in June, KCAA said NLC did not have the jurisdiction to preside over the complaint on compensation for the land, and wants the hotel demolished and the property handed back to it.

READ ALSO:   KQ passengers stranded in Kisumu for 6 hours after engine failure

Based on fraud

Priority Limited was allocated the land that was later transferred to Weston in a deal that KCAA says was based on fraud.

In response to the KCAA petition, Priority Ltd has denied allegations of fraud on the title, arguing that KCAA is yet to table documents in court as proof of the fraud.

The company has also contested KCAA demands for revocation of the title deed, arguing that the authority is motivated by ulterior motives.

Records at the registry show that Priority Limited is owned by Paul Chirchir and Mathews Otieno, and has filed with the State documents revealing who are its bankers, auditors and lawyers.

KCAA said under section 14 of the NLC Act, the commission’s mandate to review grants and terms of public land expired five years from commencement date of the Act, which was May 12, 2012.

It therefore argued that the commission’s mandate to review grants and dispositions of public land expired in May 2017.

Deal brokered

The agency filed the case to challenge the deal brokered between NLC and the owners of Weston Hotel.

“NLC had no powers to review grants and dispositions by January 25, 2019, which is more than one year eight months late. This suggests deliberate delay by the NLC to frustrate the KCAA,” reads part of the pleadings filed in court.

READ ALSO:   President Kenyatta to be among passengers of KQ's first ever direct flight to USA, buys ticket

In the decision, delivered on January 25, 2019, NLC recognised and emphasised KCAA’s entitlement to the piece of land remained unchallenged and noted that Weston Hotel and the initial owners of the land, Priority Ltd and Monene Investments Ltd, irregularly procured the registration of the land. It then ordered the company to compensate KCAA.

But in the papers filed in court by James Orengo and Otiende Amollo, KCAA insists that it owns the land and any entity with a different title procured it through illegality, fraud and corruption.

BY Business Daily

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Two arrested for conning Italian national of Sh 8 million in fake gold scam

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Detectives from the Serious Crime Unit on Saturday arrested two people for allegedly conning an Italian national of more than Sh 8 million in a fake gold scam.

The two suspects, Pupe Chipando (Zambian) and Mark Muriri (Kenya), who are currently in police custody, were arrested in their house in Kileleshwa, Nairobi.

In the house, the police also recovered and confiscated a fake refinery equipment.

“Early today, @DCI_Kenya Detectives from the Serious Crime Unit arrested two people including a Zambian for allegedly conning a man over 88,500 US Dollars in Fake Gold Scam,” the DCI said.

The suspects will be on arraigned in court on Monday morning.

In May the fake gold scandal news made headlines after a group of people conned the Dubai Royal family of Sh 400 million.

What followed next was the arrest of 15 suspects linked to the fake gold syndicate in the country.

The suspects were nabbed in a rented stand-alone house on Kaputei road in Valley Arcade, Nairobi, where fake gold was also discovered.

The consignment bearing Ghanaian custom papers was stuffed in metallic boxes and their weight had been altered using cement.

The incident saw DCI George Kinoti cautioning Kenyans and foreign nationals to conduct due diligence on the person(s) they intend do business with.

READ ALSO:   VIDEO: See all the people who were on board KQ inaugural flight to NY

By Nairobi News

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Business

SPECIAL OFFER FOR DIASPORA: Own your Dream Home at Rockvilla III Estate for only Ksh3.95M

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ROCKVILLA III ESTATE

A beautiful gated estate, in the heart of serenity. 3-Bedroom Bungalows by Mahiga Homes, and each unit sitting on a 40×80 plot.

A cosmopolitan area, located in Joska, 300M off Kang’undo Road.

FEATURES:

    •  106 square metres

      1.   Master Ensuite bedroom

        • Spacious Lounge and Kitchen

          •  Large windows for natural lighting

            •  Inbuilt MDF wardrobes

              •  Cabro paved driveways

                • Car port for 2 cars

                  •  Green area

                    •  Available borehole water for the estate

                      •  Solar water heating system

                        •  Perimeter wall all round the estate

READ ALSO:   Flights to JKIA diverted after radar failure
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