Kenya Airways To Sell Bottled Water After Opening Plant At JKIA

In its latest move to diversify income streams from its primary business model, national airline Kenya Airways on Tuesday, October 1 opened a water bottling plant at the Jomo Kenyatta International Airport (JKIA) as it embarked on a journey of innovation and long term sustainability of its business.

The opening was part of the launch of three strategic projects designed to advance sustainability, paving the way for a more promising future.

The initiatives include the Pyro-Diesel Plant, the expansion of the Water Bottling Plant, and the  transformation of Msafiri House into a centralized operations hub, which the airline says is part of a larger, sustainability and strategic recovery plan, Project Kifaru.

Regarding the new initiatives, Kenya Airways CEO Allan Kilavuka remarked, "These three bold projects align with Project Kifaru, our strategic recovery plan, which prioritizes financial sustainability, customer focus, and environmental responsibility."

Inside Kenya Airways' Pyro-Diesel plant launched at JKIA on October 1, 2024. /KENYA AIRWAYS

"They also demonstrate the airline's commitment to reducing its  environmental footprint, improving operational efficiency, and contributing to Africa's prosperity through  responsible corporate practices."

The airline, codenamed KQ, in a statement to newsrooms explained that the water bottling plant and the Pyro-Diesel Plant are key components of its sustainability efforts and an innovative approach to cutting costs and reducing reliance on traditional fossil fuels while significantly lowering carbon emissions.  

According to KQ Chief Operating Officer George Kamal, the Water Bottling Plant, with a capacity to produce approximately 4,500 litres per day, reduces Kenya Airways’ reliance on external suppliers and significantly lowers water procurement costs while generating additional revenue through potential water sales. 

"With a production capacity of 700 to 1,000 litres of diesel, the Pyro-Diesel Plant will make a tangible impact on our operational costs, reducing fuel expenses and decreasing the environmental footprint of our ground operations. This means that we are not just cutting costs for short-term gains; we are building a more resilient and sustainable future for Kenya Airways," said Kamal.

This dual benefit underscored Kenya Airways’ commitment to sustainability and financial prudence. The  plants are expected to create additional employment opportunities as they scale up operations, further  supporting Kenya Airways’ commitment to sustainability and community development.  

As part of significantly enhancing operational efficiencies, Kenya Airways also transformed its property,  Msafiri House, near its headquarters into a centralized Operations Control Centre (OCC) for its flight crew,  inflight management and fleet management. This will streamline operations, improve team collaboration, and reduce travel time between different departments, thereby enhancing work efficiency and employee satisfaction.

It will also deliver significant cost savings by reducing airport access, parking  charges, and rent expenses.

Furthermore, Msafiri House will alleviate congestion at Kenya Airways' Approved Training Organization (ATO) by providing additional training facilities, which are expected to  generate additional revenue through increased training capacity. 

Why The Pyro-Diesel Plant, Water Bottling Plant Matters

Kenya Airways has been struggling with its primary business model, as other competitors such as Ethiopia Airlines, regional competitors, as well as airlines from the Gulf and the rest of the world take over.

The perennial financial struggles would explain why its achievement of a profit after tax of Ksh513 million for the first half of the financial year ending June 30, 2024, from the Ksh21.7 billion loss reported in a similar previous period, was received by the national carrier as a milestone. This was the first time the airline reported a profit after tax since 2013. 

KQ’s multiple financial constraints, which have been covered with government bailouts and a decision to change some of its extensive debt into equity, mean that any plans to diversify its business model and cut operational costs are good news.

However, the markets Kenya Airways is entering already have many players, and the logistics and realities of selling bottled water are different from running an airline.