Roho safi. I was like you. I used to believe that things would be better. I believed the hype. I believed the Management. I thought Naikuni was THE GUY.

I lost a lot on KQ. Even on KK (Segman days). As I read more of Buffett's writings, I realized that MANAGEMENT is key.
Ngunze may be a nice guy. He may be competent. The people (eg CFO) are either crooked, incompetent or both.

Segman had hubris. Later I found out that despite the objections of his senior staff (& board) he took outsized BETS (gambling not operations) on forex & oil prices to goose up the EPS.

Ohana is brusque but he reduced debt by reducing inventories (no speculation on the movement in prices), paid off (cheap but not when KES depreciates) FX debt, sold assets, cut costs, etc. He also lucked out that oil prices fell thus reducing the need for Working Capital.

KQ - There's no significant reduction in debt. The 'hard assets' [land, planes] will be sold but as the 2 new 787s [waiting for delivery] come in the debt will rise again. The most important point is that I do NOT trust the management. Period.

KK has a chance at being bought out at (revised) NAV or better. If not, it can remain profitable with price controls stifling competition.
KQ has little chance of being bought out in its current state. There's too much drama with debtors, pilots, employees, etc. It will have to restructure & the debtors will own the airline while the Shareholders will be wiped out.

In other words, sell ALL your KQ shares & look for a better firm to put your money in. Good Luck.

Good brother I see finally you accept reality. Being heavy on KQ was tricky in such economical times.You have really enriched the brokers.

Via @bankelele a blogger

http://bankelele.co.ke/2...-agm.html#comment-10539

@obiero - Where's your blog post on KQ's AGM?

Now its out in the wild, lets see what happens

Loss-making Kenya Airways announces two directors

These reporters have no feelings. Especially to KQ which cannot afford an office in Nation Towers unlike the good old DJ.