Kenya Airways exploring viability of air taxis to diversify revenues

National carrier, Kenya Airways, is exploring the viability of air taxis as a means of diversifying its revenues. This disclosure was made during the release of the airline's half-year results which should that it secured a revenue growth of 77.6 per cent. "The industry is experiencing recovery, Our focus is to ensure that we strengthen out operational resilience though innovation and diversification to deliver great and reliable services to our customers," Kenya Airways CEO Allan Kilavuka said. However, the costs of running the airline escalated beyond the projects leading to a loss of Sh9.9 billion a better performance than half one of 2021 when it recorded a Sh11.52 billion loss. Chairman Michael Joseph attributed the high cost to a surge in fuel costs and foreign exchange pressures. The airline also reported US$ 1.6 billion in blocked funds globally, US$ 1.0 billion of which is attributable to Africa. Kilavuka cited challenges in repatriating funds from markets like Nigeria and Ethiopia. The airline also did not have any open fuel hedge positions. The airline says that during the first half of 2022, operations were positively impacted by pent-up demand and the removal of travel restrictions, resulting in a strong and sustained recovery in trading performance compared to a similar period in the prior year. Kenya Airways uplifted a total of 1.61 million passengers during the period, an 85 per cent improvement compared to the prior year's 0.87 million passengers.
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Episodes
Kenya's rising tax burden | On the money The conversation on the ‘Tax vs GDP ratio’ has been trending for a while with many people not wondering about the pros and cons, or even further, not understanding what it even means. President William Ruto set out an ambition of increasing the tax vs GDP to 22% by the year 2027 June 5, 2024
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Supplementary budget 2 | On The Money This week on the money, we shift focus to Supplementary Budget 2 ahead of the National Budget reading and tabling in parliament. With significant expenditure slashes, this supplementary budget faces sharp revenue out turns and significant considerations like disaster and emergency funds allocations. NTV's Julians Amboko sat with IC Group Economist Churchill Oduor and he started by asking his highlights of the budget. May 8, 2024
Operationalizing the Lamu Port || On the money Ethiopia is set to be the first landlocked country within the East African Community region to import cargo via the port of Lamu. A conventional cargo carrier is expected to dock in Lamu with over 60,000 metric tons of fertiliser to be transported to Addis Ababa through the Lamu Port-South Sudan-Ethiopia-Transport Corridor road infrastructure. With the arrival and installation of the ultra mordern equipment at the port, the facility is now capable of handling Post Panamax vessels carrying upto 20,000 containerized cargo. April 17, 2024
National Debt Headache || #OnTheMoney Experts are calling on alternative sovereign restructuring means and templates to cushion African countries from defaulting and for better lending terms. This has been against the back drop of Ghana's recent default in meeting its debt obligations. NTV's Julians Amboko is back from a debt conference that happened in Accra in march and shares excerpts of Business redefined show tonight, on the money. April 10, 2024
Weak shilling hurts banks || On the money Top Kenyan banks recorded gains worth 35.8 billion shillings when converting the 2023 financials of regional subsidiaries into Kenya shillings, reflecting the effect of a weaker currency in the period under review. This is a whooping 6.6 billion shillings less what the lenders earned in the preceding year. This week, On the money, NTV's Brian George crosses the T's and dots the i's explaining what happened, in a year that saw the Kenyan shilling record sharp volatilities. Take a look. April 3, 2024
Nine steel manufacturers slapped with record Sh338.8M fine for market distortion The Competition Authority of Kenya has slapped nine steel manufacturers with a record Sh338.8 million fine for market distortion and price collusion. According to the competition watchdog, the nine companies have been penalised for artificially inflating the prices of steel products. The companies and their fines include Corrugated Steel Ltd (Sh86.9 million), Tononoka Rolling Mills Ltd (Sh62.7 million), Devki Steel Mills Ltd (Sh46.3 million), Doshi and Hardware Ltd (Sh41.6 million), Jumbo Steel Mills (Sh33.1 million) and Accurate Steel Mills Ltd (Sh26.8 million). Others are Nail and Steel Products Ltd (Sh22.8 million), Brollo Kenya (Sh9.4 million) and Blue Nile Wire Products Ltd (Sh9.16 million). CAK said investigations into the steel sector commenced in August 2020 when the Authority began collecting intelligence on pricing and output restriction. The Authority's Acting DG Adano Wario said the penalties on the firms are proportional to the offense, specifically harming consumers who are grappling with the high cost of building materials in the country. "Cartels are conceived, executed and enforced by businesses to serve their commercial interests and to the economic harm of consumers," Wario said. August 23, 2023
MSMEs in the medical business | Thamani The medical business is a rapidly growing industry, and MSMEs are well-positioned to capitalize on this growth. They are nimble and adaptable, and they are able to respond quickly to changes in the market. They are also able to provide high-quality services at a competitive price. June 20, 2023
Kamau Thugge officially assumes office as 10th governor of the CBK The Central Bank of Kenya (CBK) has officially announced the appointment of Kamau Thugge as its tenth Governor. Thugge takes over from former governor Patrick Njoroge, who has completed two terms, each lasting four years. With a wealth of experience from his distinguished career in international and Kenyan public service, Thugge has made significant contributions to shaping economic policies and initiatives. Having worked at the International Monetary Fund (IMF) and held various senior roles in Kenya's National Treasury, Thugge brings valuable expertise to his new position. Earlier today, Patrick Njoroge handed over the reins to Kamau Thugge.   June 19, 2023