Jambojet (JM, Nairobi Jomo Kenyatta) received KES2.5 billion shillings (USD18.1 million) in financial support from parent Kenya Airways (KQ, Nairobi Jomo Kenyatta) last year while making an estimated or assessed tax loss of KES3.27 billion (USD23 million), up from KES2.93 billion (USD20.6 million) in 2021.
This is according to Kenya Airways’ annual report for 2022, which shows the national carrier’s contribution to its wholly-owned low-fare subsidiary increased by KES1.4 billion (USD10.1 million) for the year ending December 31, 2022, from KES1.1 billion (USD7.9 million) in 2021.
At the same time, the parent airline owed Jambojet KES92 million (USD649,712) by December 31, 2022.
According to the report, “the amounts due from Jambojet to Kenya Airways relate to management fees, loans and interline balances from passenger uplifts on behalf of Jambojet. The related party balances are interest-free and have no fixed repayment terms, while the loans are at a fixed interest rate of 9.5% per annum”.
Kenya Airways itself reported a net loss of KES38.26 billion (USD270.2 million) in 2022, more than double the loss of KES15.8 billion (USD111.5 million) in 2021.
After consolidating its domestic network of ten routes and increasing its frequencies from its Nairobi Jomo Kenyatta and Mombasa hubs, Jambojet is now setting its sights on regional expansion. It is in discussion with neighbouring governments to establish joint ventures for budget carriers in the next two years, according to Chief Executive Officer and Managing Director Karanja Ndegwa. The carrier currently operates one cross-border flight to Goma in the Democratic Republic of Congo (DRC). Its fleet comprises seven DHC-8-Q400s, with an eighth expected this month.
