Mps today voted to accept a proposal to nationalize Kenya Airways as a way to save it from debts.

The airline which is 48.9% owned by the government and 7.8% by Air France-KLM has been struggling to make profit after periods of seasonal loss making.

It was forced to restructure $2 billion debt in 2017 to save the business. Kenya Airways later proposed to take over management and running of Kenya’s main airport to boost its revenue.

Parliament’s transport rejected the proposal and suggested nationalizing the carrier in a report debated on June 18 by the National Assembly.

In a vote taken in the afternoon session, majority of the MPs in the house voted to accept the report.

This means the transport committee now has the power to follow up with other state agencies and the carrier to implement the same.

The committee’s report proposes that the country set up an aviation holding company with four subsidiaries, one of which would run Kenya Airways.

Under the proposals, another arm of the holding company would operate Nairobi’s main international airport.

The committee’s report also recommended that the holding company be given tax concessions for a period to be determined and that it be exempted from paying excise duty on all goods, including jet fuel.