Geza Ulole
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Just like KQ, SGR Kenya joined the fray of loss making firms in Kenya with $140 mln loss
Just like KQ, SGR Kenya joined the fray of loss making firms in Kenya with $140 mln loss
- Thread starter Geza Ulole
- Start date
Geza Ulole
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Lwiva
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Tunajua mnaabudu slum
komora096
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Pole sana km imekuingia[emoji1787][emoji1787]
Geza Ulole
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Geza Ulole
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Unashindwa kutafsr hiyo financial statement .ATCL is performing very well unaona from loss imepungua from 16bn to 10bn for 2017 and 2018 respectively
The trend is good unlike to your KQ which is sinking down and down
Geza Ulole
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Geza Ulole
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game over
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Geza Ulole
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imekwama GoK imekosa fedha kumalizia zile three berths! Mwaka wa nane mradi haujaisha toka 2012...
FUNDING HITCH
Lapsset hit by budget cuts, state saves Sh7.2bn
Government has suspended new development on the project
In Summary
• Treasury says it encourages a public-private partnership approach for the Lapsset.
• While construction of the first three berths at Lamu Port commenced in 2012, after commissioning of the project by former President Mwai Kibaki, the project's construction has been slow.
Lamu youth working at the Lapsset project ./CHETI PRAXIDES
Image: CHETI PRAXIDES
The Sh2.5 trillion Lamu Port-Southern Sudan-Ethiopia Transport Corridor is among the biggest casualties in government budget cuts.
To mitigate the effects of Covid-19, the state has sought Sh95.3 billion from its departments.
The National Treasury has suspended new development at Lapsset to save Sh7.25 billion, according to the Economic Stimulus Package by the state.
Treasury says it encourages a public-private partnership approach for the Lapsset.
State departments and projects have seen their budgets cut with a Sh90 billion kitty being fronted to support SMEs, purchase of milk, cereals and different sectors among them youth and education.
The latest developments leave the Lapsset project in limbo with its completion timelines likely to drag further.
While construction of the first three berths at Lamu Port commenced in 2012, after commissioning of the project by former President Mwai Kibaki, the project implementation has been slow.
This is mainly on low budgetary allocation and lack of support by partner states of Ethiopia and South Sudan.
Ethiopia has not been very keen on Lamu as it has options of Djibouti and Eritrea ports, where there already exist a good road and rail network.
According to the shippers' council, the end of political and economic wars between Ethiopia and Eritrea following the July 2018 peace has created a conducive environment for trade.
South Sudan has also been reluctant to support the development of the project.
“Let’s not count on these countries. If today South Sudan and Sudan go back to the old days and allow passage of goods through Port Sudan, it will impact Lamu Port. Ethiopia the same with Eritrea and Djibouti,” Shippers Council of East Africa chief executive Gilbert Langat told the Star.
The seaport is among key projects lined up in the Lapsset Corridor aimed at easing the movement of goods and reducing congestion at the port of Mombasa.
The Treasury has allocated Sh21 billion in two tranches of Sh10 billion and Sh11 billion to date.
This is despite the magnitude of the project which is also planned to have a railway line, pipeline and highway connecting the three countries.
The project will also see the construction of an oil refinery, three airports including the expansion of Manda airstrip in Lamu and construction of resort cities in Lamu, Isiolo and Lake Turkana shores.
The Kenyan government is putting up the first three berths and counting on the private sector to support completion of the planned 32-berths seaport.
The first three berths are being developed by China Communication Construction Company for Sh71.2 billion. The first berth was completed on August 6 last year.
Lapsset Development Authority recently confirmed the remaining two berths are at an advanced stage with the actual completion of the project at above 76 per cent.
The delays facing the wider Lapsset project saw state officials meet in Mombasa in January. The three governments renewed their commitment to the corridor.
Kenya’s Transport Cabinet Secretary James Macharia, Ethiopian Ambassador to Kenya Meles Alam and South Sudan’s Undersecretary in the Ministry of Transport Captain David Martin signed an MoU to signify the three states’ commitment in supporting the revitalisation of the project.
Lapsset authority recently confirmed to the Star operationalisation process for the port has begun with making it compliant with International Ship and Port Facility Security Code (ISPS Code) and Marpol regulation.
“Continuous coordination with shipping lines is being done,” Lapsset secretariat told the Star.
The port will however not make economical sense if there is lack of a good road and rail network connecting the three states, shippers say.
“Our proposal is we look at Lamu in-terms of minerals, petroleum export and transhipment cargo. We also need to create an industrial zone with proximity to the port,” Langat said in a recent interview with the Star.
Currently, Kenya transships through the Port of Salalah, the largest port in Oman.
Lapsset hit by budget cuts, state saves Sh7.2bn
game over
JF-Expert Member
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Mikenya ni Mijitu ya Hovyo Kabisa, yaani Kelele zote zile kumbe bila China hakuna kituimekwama GoK imekosa fedha kumalizia zile three berths! Mwaka wa nane mradi haujaisha toka 2012...
FUNDING HITCH
Lapsset hit by budget cuts, state saves Sh7.2bn
Government has suspended new development on the project
In Summary
• Treasury says it encourages a public-private partnership approach for the Lapsset.
• While construction of the first three berths at Lamu Port commenced in 2012, after commissioning of the project by former President Mwai Kibaki, the project's construction has been slow.
Lamu youth working at the Lapsset project ./CHETI PRAXIDES
Image: CHETI PRAXIDES
The Sh2.5 trillion Lamu Port-Southern Sudan-Ethiopia Transport Corridor is among the biggest casualties in government budget cuts.
To mitigate the effects of Covid-19, the state has sought Sh95.3 billion from its departments.
The National Treasury has suspended new development at Lapsset to save Sh7.25 billion, according to the Economic Stimulus Package by the state.
Treasury says it encourages a public-private partnership approach for the Lapsset.
State departments and projects have seen their budgets cut with a Sh90 billion kitty being fronted to support SMEs, purchase of milk, cereals and different sectors among them youth and education.
The latest developments leave the Lapsset project in limbo with its completion timelines likely to drag further.
While construction of the first three berths at Lamu Port commenced in 2012, after commissioning of the project by former President Mwai Kibaki, the project implementation has been slow.
This is mainly on low budgetary allocation and lack of support by partner states of Ethiopia and South Sudan.
Ethiopia has not been very keen on Lamu as it has options of Djibouti and Eritrea ports, where there already exist a good road and rail network.
According to the shippers' council, the end of political and economic wars between Ethiopia and Eritrea following the July 2018 peace has created a conducive environment for trade.
South Sudan has also been reluctant to support the development of the project.
“Let’s not count on these countries. If today South Sudan and Sudan go back to the old days and allow passage of goods through Port Sudan, it will impact Lamu Port. Ethiopia the same with Eritrea and Djibouti,” Shippers Council of East Africa chief executive Gilbert Langat told the Star.
The seaport is among key projects lined up in the Lapsset Corridor aimed at easing the movement of goods and reducing congestion at the port of Mombasa.
The Treasury has allocated Sh21 billion in two tranches of Sh10 billion and Sh11 billion to date.
This is despite the magnitude of the project which is also planned to have a railway line, pipeline and highway connecting the three countries.
The project will also see the construction of an oil refinery, three airports including the expansion of Manda airstrip in Lamu and construction of resort cities in Lamu, Isiolo and Lake Turkana shores.
The Kenyan government is putting up the first three berths and counting on the private sector to support completion of the planned 32-berths seaport.
The first three berths are being developed by China Communication Construction Company for Sh71.2 billion. The first berth was completed on August 6 last year.
Lapsset Development Authority recently confirmed the remaining two berths are at an advanced stage with the actual completion of the project at above 76 per cent.
The delays facing the wider Lapsset project saw state officials meet in Mombasa in January. The three governments renewed their commitment to the corridor.
Kenya’s Transport Cabinet Secretary James Macharia, Ethiopian Ambassador to Kenya Meles Alam and South Sudan’s Undersecretary in the Ministry of Transport Captain David Martin signed an MoU to signify the three states’ commitment in supporting the revitalisation of the project.
Lapsset authority recently confirmed to the Star operationalisation process for the port has begun with making it compliant with International Ship and Port Facility Security Code (ISPS Code) and Marpol regulation.
“Continuous coordination with shipping lines is being done,” Lapsset secretariat told the Star.
The port will however not make economical sense if there is lack of a good road and rail network connecting the three states, shippers say.
“Our proposal is we look at Lamu in-terms of minerals, petroleum export and transhipment cargo. We also need to create an industrial zone with proximity to the port,” Langat said in a recent interview with the Star.
Currently, Kenya transships through the Port of Salalah, the largest port in Oman.
Lapsset hit by budget cuts, state saves Sh7.2bn
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Geza Ulole
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- Oct 31, 2009
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Taxpayers to bailout KQ as it sinks into a further $130m loss, and still grounded
TUESDAY JUNE 2 2020
Aircraft operated by Kenya Airways parked at Jomo Kenyatta International Airport in Kenya's capital Nairobi. PHOTO | FILE | NATION MEDIA GROUP
In Summary
By JAMES ANYANZWA
More by this Author
Kenyan taxpayers are set to feel the full weight of owning a bigger stake of the national carrier, as the airline reported a $130 million (Ksh13 billion) full-year loss at a time when it is seeking a government bailout to sail through the Covid-19 pandemic.
Kenya Airways last year underwent a series of capital and debt restructuring that elevated taxpayers to the biggest shareholders of the financially troubled carrier.
The Treasury last year extended a $50 million bailout to the airline, and is currently evaluating another $70 million funding request to help the carrier cope with revenue loss during the coronavirus pandemic, which has disrupted air travel across the globe.
“As you know we have been grounded for nearly three months now and during that time we have maintained all 38 aircrafts whether flying or not flying, we have to pay our leases, we have to pay the insurance costs, and we have a number of costs that don’t go away whether you are flying or not flying. In addition, we still have to pay salaries and so we have asked for money from the government and we are still waiting to hear about that,” said the Kenya Airways chairman Michael Joseph at a press briefing this week.
DE-LISTING FROM NSE
The airline has run short of cash to finance its operations including maintenance of aircrafts, payment of leases and employee salaries.
KQ is 48.9 per cent owned by the government and a group of 10 local banks that hold 38.1 per cent of its shares.
Other shareholders include KLM Royal Dutch Airline (7.8 per cent), employees (2.4 per cent) and other shareholders at 2.8 per cent.
But the airline is set to be delisted from the Nairobi Securities Exchange (NSE), after parliament last year approved its takeover by the State.
The carrier, which is grappling with a negative working capital of Ksh42.15 billion, saw its net loss for 2019 widen to Ksh12.97 billion ($129.7 million) from Ksh7.58 billion($75.8 million) in 2018.
Its management says it has halted route network expansion and embarked on a review of the existing ones with a view to further abandoning and reducing frequencies on what it considers to be non-profitable flights.
The latest are part of raft of the new measures that the troubled national carrier is considering to stay afloat in the wake of the Covid-19 pandemic that has grounded 90 per cent of its operations in the past three months.
LONG-TERM SURVIVAL
Other measures include diversification into the cargo business, digitisation of its operations and the consolidation of the aviation sector assets as the airline looks for long term survival techniques.
The management blamed the losses on fleet ownership costs, increased costs on new routes and frequencies and increased financing costs related to interest on loan repayments, foreign exchange movements and adoption of the new accounting standard — (IFRS16).
The devaluation of the airline’s assets also reduced the firm’s revenues by Ksh6.73 billion ($67.3 million).
Its total revenues increased by 12 percent to Ksh128.31 billion ($1.28 billion) from Ksh114.18 billion ($1.14 million) helped by cargo load and passengers fares on new routes — Geneva, Rome and Malindi — while operating costs increased by the same margin to Ksh129.17 billion ($1.29 million) from Ksh114.86 billion ($1.14 million).
Chief executive Allan Kilavuka said the future of the aviation industry remains uncertain in the wake of the Covid-19 pandemic that has seen governments put in place measures to control the spread of the virus including suspension of international flights to enforce social distancing regulations.
“We are not going to invest in any new route going forward of course. We are going to look at the routes that we have invested in and see whether we want to continue with that investment because any route has an investment,” Mr Kilavuka told an investor briefing in Nairobi last week.
“In some cases we will stop flying to some destinations, in other cases we will reduce frequencies and in other cases we will suspend operations. There are different things we are looking at so that we can respond to the market in the new context.”
The airline estimates that passenger demand in Kenya alone will drop by about 3.5 million this year, while global traffic is forecast to decline by 4.7 percent, causing the first overall decline in demand since the Global Financial crisis of 2008-2009, according to the International Air Transport Association (IATA).
The IATA also forecasts that the global aviation industry will lose $29 billion worth of passenger revenues this year, of which $40 million will be linked to African airlines.
THREE-YEAR RECOVERY
“The times ahead of us are very uncertain but like I said, if you look at the immediate future the year 2020 is obvious not going to be business as usual, the aviation sector will take time to recover,” said Kilavuka.
“There have been very many hypotheses, some are predicting a three-year recovery period, some are predicting a one-year recovery period but the general consensus is that there will be a drop in passenger numbers by at least 50 per cent. My own estimate is slightly more than that. In Kenya in particular we see that the demand for passenger travel we estimate that it is going to drop by about 3.5 million passengers.
So it means is that we need to adapt to this new context.”
KQ increased its losses for the year 2018 to Ksh7.5 billion ($75 million) from Ksh6.4 billion ($64 million) in 2017.
Its net loss for the six months’ period to June 30 2019 more than doubled to Ksh8.5 billion ($85 million) from Ksh4 billion ($40 million) in the same period the previous year (2018).
Taxpayers to bailout KQ as it sinks into loss
TUESDAY JUNE 2 2020
Aircraft operated by Kenya Airways parked at Jomo Kenyatta International Airport in Kenya's capital Nairobi. PHOTO | FILE | NATION MEDIA GROUP
In Summary
- Kenya Airways last year underwent a series of capital and debt restructuring that elevated taxpayers to the biggest shareholders of the financially troubled carrier.
- IATA also forecasts that global aviation industry will lose $29 billion worth of passenger revenues in 2020, of which $40 million will be linked to African airlines.
By JAMES ANYANZWA
More by this Author
Kenyan taxpayers are set to feel the full weight of owning a bigger stake of the national carrier, as the airline reported a $130 million (Ksh13 billion) full-year loss at a time when it is seeking a government bailout to sail through the Covid-19 pandemic.
Kenya Airways last year underwent a series of capital and debt restructuring that elevated taxpayers to the biggest shareholders of the financially troubled carrier.
The Treasury last year extended a $50 million bailout to the airline, and is currently evaluating another $70 million funding request to help the carrier cope with revenue loss during the coronavirus pandemic, which has disrupted air travel across the globe.
“As you know we have been grounded for nearly three months now and during that time we have maintained all 38 aircrafts whether flying or not flying, we have to pay our leases, we have to pay the insurance costs, and we have a number of costs that don’t go away whether you are flying or not flying. In addition, we still have to pay salaries and so we have asked for money from the government and we are still waiting to hear about that,” said the Kenya Airways chairman Michael Joseph at a press briefing this week.
DE-LISTING FROM NSE
The airline has run short of cash to finance its operations including maintenance of aircrafts, payment of leases and employee salaries.
KQ is 48.9 per cent owned by the government and a group of 10 local banks that hold 38.1 per cent of its shares.
Other shareholders include KLM Royal Dutch Airline (7.8 per cent), employees (2.4 per cent) and other shareholders at 2.8 per cent.
But the airline is set to be delisted from the Nairobi Securities Exchange (NSE), after parliament last year approved its takeover by the State.
The carrier, which is grappling with a negative working capital of Ksh42.15 billion, saw its net loss for 2019 widen to Ksh12.97 billion ($129.7 million) from Ksh7.58 billion($75.8 million) in 2018.
Its management says it has halted route network expansion and embarked on a review of the existing ones with a view to further abandoning and reducing frequencies on what it considers to be non-profitable flights.
The latest are part of raft of the new measures that the troubled national carrier is considering to stay afloat in the wake of the Covid-19 pandemic that has grounded 90 per cent of its operations in the past three months.
LONG-TERM SURVIVAL
Other measures include diversification into the cargo business, digitisation of its operations and the consolidation of the aviation sector assets as the airline looks for long term survival techniques.
The management blamed the losses on fleet ownership costs, increased costs on new routes and frequencies and increased financing costs related to interest on loan repayments, foreign exchange movements and adoption of the new accounting standard — (IFRS16).
The devaluation of the airline’s assets also reduced the firm’s revenues by Ksh6.73 billion ($67.3 million).
Its total revenues increased by 12 percent to Ksh128.31 billion ($1.28 billion) from Ksh114.18 billion ($1.14 million) helped by cargo load and passengers fares on new routes — Geneva, Rome and Malindi — while operating costs increased by the same margin to Ksh129.17 billion ($1.29 million) from Ksh114.86 billion ($1.14 million).
Chief executive Allan Kilavuka said the future of the aviation industry remains uncertain in the wake of the Covid-19 pandemic that has seen governments put in place measures to control the spread of the virus including suspension of international flights to enforce social distancing regulations.
“We are not going to invest in any new route going forward of course. We are going to look at the routes that we have invested in and see whether we want to continue with that investment because any route has an investment,” Mr Kilavuka told an investor briefing in Nairobi last week.
“In some cases we will stop flying to some destinations, in other cases we will reduce frequencies and in other cases we will suspend operations. There are different things we are looking at so that we can respond to the market in the new context.”
The airline estimates that passenger demand in Kenya alone will drop by about 3.5 million this year, while global traffic is forecast to decline by 4.7 percent, causing the first overall decline in demand since the Global Financial crisis of 2008-2009, according to the International Air Transport Association (IATA).
The IATA also forecasts that the global aviation industry will lose $29 billion worth of passenger revenues this year, of which $40 million will be linked to African airlines.
THREE-YEAR RECOVERY
“The times ahead of us are very uncertain but like I said, if you look at the immediate future the year 2020 is obvious not going to be business as usual, the aviation sector will take time to recover,” said Kilavuka.
“There have been very many hypotheses, some are predicting a three-year recovery period, some are predicting a one-year recovery period but the general consensus is that there will be a drop in passenger numbers by at least 50 per cent. My own estimate is slightly more than that. In Kenya in particular we see that the demand for passenger travel we estimate that it is going to drop by about 3.5 million passengers.
So it means is that we need to adapt to this new context.”
KQ increased its losses for the year 2018 to Ksh7.5 billion ($75 million) from Ksh6.4 billion ($64 million) in 2017.
Its net loss for the six months’ period to June 30 2019 more than doubled to Ksh8.5 billion ($85 million) from Ksh4 billion ($40 million) in the same period the previous year (2018).
Taxpayers to bailout KQ as it sinks into loss
Geza Ulole
JF-Expert Member
- Oct 31, 2009
- 65,136
- 91,917
- Thread starter
- #34
Geza Ulole
JF-Expert Member
- Oct 31, 2009
- 65,136
- 91,917
- Thread starter
- #36
U will be shocked Steve Harvey is in Tanzania on a truth finding mission!