Financial Loss: Kenya Airways Begins to Sell Land
Kenya Airways has completed the sale of five acres of land in Embakasi to the Kenya Medical Supplies Agency (Kemsa) in a transaction that will earn the carrier over Sh400 million (USD 4 million).
According to The Nation, the airline made the deal as part of multiple asset sales aimed at strengthening its financial position. KQ early last year invited bids for two parcels of land opposite its training school --one measuring 24.71 acres and another of 5.56 acres.
The company's management, which was expecting to raise about Sh2.25 billion from the transactions, has now decided to sell only five acres to Kemsa and shelve the other transaction. The land sold to Kemsa has been rented by the government's medical logistics provider for decades.
"We completed the sale of the five acres to Kemsa. We have signed the contract and expect them to send us the money in the next couple of days," Mbuvi Ngunze, KQ's managing director, said during the recent release of full year results.
The carrier's move to sell idle property is part of its quest to inject much-needed cash into the business which has now posted losses for four consecutive years, with the latest one being a record net loss of Sh26.2 billion for the year ended March.