KQ does not need more money, it needs sound business practice

NAIROBI: For the second year running, Kenya Airways (KQ), has made staggering losses. Its latest financial report shows the airline made over Sh25 billion losses. In 2014, the national carrier made losses amounting to Sh3.3 billion. Since 2008, the national airline has experienced a profit and loss see-saw, recording a profit one year and descending into a loss in the next.

But never in the history of corporate Kenya have we experienced such a precipitous drop in profits. Whereas a drop in the profit might not signal imminent implosion, especially in the airline industry where the loss can be redeemed in the long-term by how the firm manipulates fuel hedging and other costs, KQ’s misfortunes raise several questions.