Kenya Airways Sh8,000 per barrel fuel pricing bet that flew off radar

Kenya Airways Chief Executive Officer Mbuvi Ngunze (centre) before the Senate Committee, where he explained that the new aircraft bought were more efficient and successful in the market. He was accompanied by Group Human Resources Director Alban Mwendar (right) and Chairman Evanson Mwaniki yesterday. [PHOTO: ANGELA MAINA/STANDARD]

Kenya Airways is purchasing fuel at Sh8,000 ($80) per barrel, about a quarter over the prevailing market prices in a pricing bet gone awry and partly responsible for its record loss.

This is first time the airline has divulged details of its fuel hedging contract which the management has repeatedly claimed were highly confidential.