Politics
President Ruto’s Lavish US Trip Amid Kenya’s Economic Struggles Ignites Debate
Whatever U.S President Joe Biden told, his Kenyan counterpart must have been funny.
: Critics argue that such extravagant spending contradicts the government’s call for austerity and living within means.
: This controversy brings to the forefront the more significant issue of government spending and the delicate balance between diplomatic requirements and fiscal responsibility.
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By Charles Wachira
President William Ruto’s recent trip to the United States sparked a heated debate, mainly due to his transportation choice. In a striking juxtaposition to Kenya’s economic hardships and government-enforced austerity measures, President Ruto chose to charter a lavish Boeing Business Jet from RoyalJet, a United Arab Emirates-based company, instead of using the conventional presidential plane, Harambee One. This stark contrast has raised eyebrows, with many questioning the fairness of such a decision in light of the country’s financial difficulties.
The cost of hiring the RoyalJet aircraft for the trip is estimated at around $1.5 million (approximately 200 million Kenyan shillings). This expenditure comes when the Kenyan government faces public backlash over proposed tax increases to raise additional revenue. Critics argue that such extravagant spending contradicts the government’s call for austerity and living within means, especially given Kenya’s rising cost of living.
The choice of aircraft was also noted for its modern luxury and advanced features, including a queen-sized bed, lie-flat seats, high-speed WiFi, and a sophisticated in-flight entertainment system. The ageing Harambee One, which has been operating for nearly 30 years, contributed to choosing a more contemporary and opulent aircraft.
Despite the justifications, the public has expressed discontent, with many Kenyans believing the funds could have been more wisely used for urgent domestic needs. This controversy brings to the forefront the more significant issue of government spending and the delicate balance between diplomatic requirements and fiscal responsibility.
Meanwhile, Kenya Airways, the national carrier, is grappling with significant financial hurdles, despite its recent operational improvements.
In 2023, the airline experienced a 120% surge in operating profit due to higher passenger numbers and increased cabin factors. The company incurred pre-tax losses of Ksh 22 billion (US$ 166,037,735) for the year, but significant foreign exchange losses and legacy debt overshadowed this.
The Kenyan government has been actively supporting the airline, settling over half of Kenya Airways’ guaranteed debt, including a recent payment of Ksh6.9 billion (UUS$ 52,075,471.62). This intervention is part of a broader strategy to restructure the airline’s operations and mitigate its financial burdens
Despite these efforts, Kenya Airways remains in a negative equity position, with significant liabilities and ongoing challenges related to the depreciation of the Kenyan shilling.
The airline’s management is optimistic about its turnaround strategy, focusing on cost reduction, operational efficiency, and strategic partnerships. The government and the airline are also exploring options for privatisation or introducing an equity investor to stabilise the company’s finances.
In summary, while Kenya Airways has shown some operational improvements, it grapples with deep financial issues, requiring ongoing government support and strategic restructuring to achieve long-term sustainability.
Keywords:William Ruto US trip controversy:RoyalJet Boeing Business Jet cost:Kenya austerity and government spending:Kenya Airways financial struggles:Harambee One vs luxury jet choice