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Kenya airports body projects land at $10 billion on revaluation

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The facility has lost market share to neighbouring rival Ethiopia Airlines Group, which has invested in a new fleet and expanded the main airport in Addis Ababa into a regional hub.

Sunday 14, April 2019

(Bloomberg) --Kenya Airports Authority’s (KAA) Chief Executive Officer expects its land holdings to be worth more than KES 1 trillion ($9.9 billion) after a revaluation is concluded in a month.

Jonny Andersen, the CEO of Kenya Airports Authority, said, “Since we will have a different balance sheet, we can go to the banks and ask for completely different financing because we will have so much value.”

“It will completely change the balance sheet of KAA because we are valued at a completely different rate,” Andersen said.

In 2004, the state-owned agency last valued its 11,000 acres of land in Nairobi at KES 80 million, which is putting KAA at a huge disadvantage,” Isaac Awuondo, KAA’s Chairman said.

The agency’s revenue was KES 15.9 billion in the 12 months through June 2017, about 80 per cent of which was from Kenya’s biggest airport in Nairobi.

KAA will have to invest in the Nairobi hub to stem the loss in market share, which now stands at 34 per cent of regional traffic, from 47 per cent in 2013, Andersen said.

The agency that operates 18 airports and airstrips in the East African nation owes KES 31.9 billion from lenders including the French Development Agency, the World Bank and the African Development Bank.

KAA also plans to revise its charges taking into account inflation and other changes since it last reviewed rates more than two decades ago.

 

TAGS : KAA, Kenya Airports Authority, Kenya Airways, Ethiopia Airlines Group

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