Kenya Airways (KQ) has faced significant financial repercussions following the recent strike by aviation workers at Jomo Kenyatta International Airport (JKIA).
The strike, triggered by concerns over the proposed takeover of the airport by the Indian-based Adani Group, resulted in an estimated Sh80 million in losses for the national carrier.
According to KQ CEO Allan Kilavuka, the one-day disruption incurred substantial costs due to flight delays, cancellations, rebookings, and compensation payments.
"Strikes are not only disruptive to our customers but also extremely costly," Kilavuka remarked.
"The financial burden of the recent strike is estimated to be around Ksh80 million."
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The strike, initiated by the Kenya Aviation Workers Union (KAWU), highlighted concerns about potential job losses and deteriorating working conditions under Adani's management.
Union leaders demanded transparency in the lease agreement and an end to what they perceived as clandestine activities by Adani representatives at the airport.
The government has defended the proposed deal, arguing that it will modernize the airport and increase its capacity through substantial investments.
However, critics contend that leasing such a strategic asset to a foreign entity undermines national interests and could prevent taxpayers from reaping future benefits.
In the wake of the strike and growing public opposition, the High Court temporarily halted the proposed deal, which is pending further review.
The court's decision reflects the increasing concerns surrounding the proposed acquisition and its potential implications for Kenya's aviation sector.