JKIA-Adani Deal: Kenya Airways Posts KSh 80m Loss After Airport Workers' Strike

• On Wednesday, September 11, Kenya Airport Workers Association (KAWU) members downed their tools in a bid to prevent the implementation of the Adani Airport Holdings deal
• Kenya Airways announced delays and cancellation of some flights after the strike took close to 18 hours
• The national carrier incurred losses from the strike, which grounded all operations at the airport
• KQ chief executive officer Allan Kilavuka broke down the cost of the strike to the airline, amounting to about KSh 80 million

TUKO.co.ke journalist Wycliffe Musalia has over five years of experience in financial, business, and technology reporting and offers deep insights into Kenyan and global economic trends.

Kenya Airways reported a significant loss following the airport workers' strike against the Jomo Kenyatta International Airport (JKIA) lease.

This is according to KQ's chief executive officer (CEO) Allan Killavuka, who shared the impact of the strike.

How airport workers strike against Adani's proposal hit KQ

Speaking to local TV on Monday, September 23, at KICC Nairobi, Kilavuka estimated the cost of the strike at KSh 80 million.

The CEO noted that the airline was forced to compensate customers whose flights were cancelled.

"Strikes are very bad for us. Not only are they disruptive and inconveniencing our customers, but are also very costly. The last strike on September 11, if we look at the cost of time, rebooking, and compensating customers, among others, is significant."

"We estimate about KSh 80 million in terms of cost for that one-day disruption," said Kilavuka.

Kenya Airways announced delays and cancellation of some flights after the strike took close to 18 hours.

Hundreds of passengers remained stranded at the airport as KQ promised to monitor the situation and offer a solution.

How other strikes affected KQ

In 2022, the national carrier's estimated loss was about KSh 300 million per day, totalling KSh 1.2 billion for the four days.

This followed a four-day pilots' strike that saw operations grounded and 56 flights cancelled.

Kenya Airways was forced to refund some tickets and rebook passengers with other airlines.

What to know about JKIA-Adani deal

• According to the Kenya Airports Authority (KAA), Adani proposed developing a new terminal building, a second runway, and refurbishing the existing facilities at JKIA.
• Adani Group would retain an 18% equity stake in JKIA's operations, giving it a concession fee of KSh 6 billion, with a 10% increase every five years.

Proofreading by Otukho Jackson, a multimedia journalist and copy editor at TUKO.co.ke