Treasury orders public officials to use KQ, again

L-R- Kenya Airways flight purser, Stella Keru, demonstrates the seat automation system of a Dreamliner, boeing 787 to U.S Under Secretary for Commerce, Gilbert Kaplan and CS Tourism Najib Balala during the US trade delegation luncheon, looking on is CS Transport, James Macharia, Bob Godec, US Ambassador to Kenya and KQ CEO Sebastian Mikosz.[PHOTO:WILBERFORCE OKWIRI]

All Government agencies will be required to sign agreements with Kenya Airways to use its services.

This is expected to enforce a 2016 order on public officials to use only Kenyan-owned airlines when travelling on official duty or when taxpayer funds are spent.

The Ministry of Transport wants the carrier to sign agreements with individual Government agencies to ensure it benefits from the preferential procurement rules giving the airline a access to Government business.

Preferential treatment

The agreements will strengthen and make legally binding the requirement for public officials to fly using aircraft registered in Kenya, according to the Cabinet order dubbed Fly Kenya Policy of 2016.

Transport Principal Secretary Paul Maringa has also asked the airline to set up a round-the-clock desk to serve Government officials.

“It is… suggested that to maximise this preferential treatment, Kenya Airways should have a dedicated desk to attend to all the needs of travel by Government ministries, departments and agencies on a 24-hour basis,” said Maringa in a letter to KQ’s management in July.

“Additionally, KQ should enter into service level agreement independently with each procuring entity.”

The Cabinet order was issued in June 2016 and was then seen as a shot in the arm for the then struggling KQ.

It, however, appears to have been off to a poor start, with many officials still not complying. This has prompted the National Treasury to remind chief executives of Government departments and agencies as well as PSs in different ministries to use the national carrier as well as other products and services by Kenyan-owned enterprises. “The Cabinet secretary, National Treasury, has issued a circular letter to all principal secretaries and accounting officers affirming the Government’s commitment to support local industries… he (CS, Treasury) has highlighted the Cabinet approval of the Fly Kenya Policy, 2016, requiring all public servants to travel exclusively in Kenyan designated airlines to the extent of the availability of their services,” said Maringa.

The airline is implementing a turnaround strategy and while it has made major strides towards recovery, which is seen in the substantial reduction of losses, it is still not yet out of the woods.