Why KQ board has picked Egyptian Kamal to replace Kilavuka

Kenya Airways board has shocked the aviation sector with a controversial decision to appoint a foreigner, Egyptian George Kamal, as its new chief executive officer, replacing Kenyan Allan Kilavuka who is exiting the corner office of the national carrier.

Kilavuka is expected to proceed on leave pending the end of his second term in office at KQ, marking the end of an era of mixed performance. Under his watch, KQ posted its worst full year loss of Sh38.26 billion in 2022 but also made the first full year profit in 11  years last year of Sh5.4 billion.

The carrier last month issued a profit warning, indicating its profit would drop by more than 25 per cent in the year to December 2025, casting doubt as to whether it can sustain an upward momentum seen last year.

He also steered the carrier when Covid-19 grounded the aviation industry, including KQ. The airline confirmed his exit but said Kamal was taking over in an interim capacity.

This shocking leadership shift, approved at a board meeting on Monday, comes amid a controversial leasing deal that threatens to saddle the national carrier with a Boeing 737 MAX aircraft at exorbitant rates—reportedly over Sh58.5 million ($450,000) monthly for a 12-year term on a five-year-old plane. 

Industry insiders and professionals within KQ itself are raising alarms over the opacity of the Avalon Leasing arrangement, which far exceeds market benchmarks where even brand-new MAX jets lease for under Sh52 million ($400,000) a month, and older models go for Sh45.5-48.1 million ($350,000-$370,000) from Dubai and Qatar lessors.

The two shocking and controversial developments have ignited fierce debate in Kenya's aviation circles, with critics questioning whether installing an external CEO signals desperation or strategic renewal for the loss-making flag carrier. 

Inside sources revealed to The Standard that Kenya Airways yesterday notified the Capital Markets Authority (CMA) of the of appointment of the Egyptian over qualified Kenyans, the spotlight intensifies on the Avalon deal, described by sources as a potential financial miscalculation that could exacerbate KQ's chronic cash crunch.

KQ confirmed the exit of Kilavuka and appointment of Kamal in an interim capacity adding a process to recruit a substantive CEO would commence soon.

“Allan Kilavuka will be exiting the Company as Group Managing Director and Chief Executive Officer as he proceeds on terminal leave ahead of the expiry of his contractual tenure, following six years of dedicated service at the helm of the airline,” said the carrier in a statement yesterday.

“To ensure a smooth transition, the Board has appointed Captain George Kamal, the Company’s Chief Operating Officer (COO), as Acting GMD/CEO effective 16 December 2025. The Board will concurrently initiate a competitive recruitment process to appoint a substantive successor.”

KQ did not respond to a query by The Standard on leasing arrangement with Avalon. 

Avalon Leasing, the Dubai-based firm driving this transaction, faces mounting questions over the deal's dodgy terms. Multiple aviation sources contacted by The Standard in the Middle East reveal the proposed rate for this pre-owned MAX8 is wildly out of range with global norms raising questions whether this is a new gravy train for corruption to thrive at the expense of the national carrier. 

Qatar Airways, for instance, has grounded similar aircraft and is offloading its MAX8s at around Sh52 million ($370,000) per month, while Dubai competitors offer equivalents for as low as Sh49 million ($350,000).KQ's willingness and eagerness to pay a steep premium for an older jet—despite cheaper alternatives—has sparked fears of insider pressures or rushed decision-making. 

"This isn't just expensive; it's reckless for an airline already bleeding cash," one Wilson Airport aviation operator and analyst told The Standard anonymously for fear of repercussions within the aviation sector.

“Brand new aircrafts, with similar or better specifications and ready to enter service, are being offered for less than  $400k per month.”

Compounding the controversy, the Boeing 737 MAX does not fully comply with Kenya Civil Aviation Authority (KCAA) standards, necessitating pricey modifications that could run into tens of millions of shillings before it flies. Powered by CFM LEAP-1B engines, the plane carries a baggage of reliability issues, including higher-than-average maintenance demands.

Another source at the carrier said hiring a foreigner would reflect badly on Kenya that has a pool of qualified people but also noted that expatriates have in the past failed to fly KQ out of its mess.

He however said it is difficult to gauge whether the arrangement with Avalon Leasing is good or bad for the carrier without the benefit of studying the lease agreement, arguing there are many factors that go into such a deal. 

Insiders however warn that after thousands of flight cycles under Qatar Airways, these engines may be nearing the end of their lifespan upon delivery. "KQ risks inheriting a maintenance nightmare, with overhaul costs that could kill any short-term savings," said a senior engineer within KQ who is familiar with the aircraft's history. 

This setup not only inflates the true lease cost but undermines the airline's push for fleet efficiency.

Boeing, eager to offload MAX jets onto African airlines post its 2019 grounding crisis, appears to back the deal aggressively. Yet, RwandaAir recently rejected a near-identical proposal, citing engine risks and poor value.

The airline had ordered two Boeing 737 MAX and two A330neos, all to be delivered from leasing companies. However, these will now not arrive with the carrier, as the airline contemplates instead leasing aircraft from its future partner Qatar Airways.

Experts call on Kenya Airways to commission independent audits, benchmark against peers like Ethiopian Airlines, and consult regional regulators before inking the pact or this could lead to past leasing pitfalls that have stifled the carrier's recovery.

Inside KQ's boardroom, tensions simmer over the deal that was forced down the throat of the National carrier. 

"Rather than channeling funds into overhauls for its existing fleet—engines already serviced and ready—management eyes leasing to conserve cash and please shareholders." Says our source within the board.

This strategy, while boosting near-term optics, invites long-term perils: unreliable aircraft, ballooning costs, and eroded competitiveness against low-cost rivals. Kenya Airways' finances, though showing glimmers of recovery, remain precarious. Debt burdens, forex losses, and stalled engine payments persist, with profitability elusive amid fuel spikes and route cutbacks. 

Meanwhile the board has touted Captain Kamal as a tried and tested officer. Captain George Kamal steps into the hot seat with 27 years of global aviation expertise. A former EgyptAir first officer and captain, he climbed to captain and type-rating instructor at Etihad Airways. His resume boasts Operations Director at Air Arabia and COO at Iraqi Airways, plus a Master's in Aviation Management Transformation from London Metropolitan University.

Observers also note that the changes have been okayed by a board that does not have a substantive chairman following the retirement of Michael Joseph as board chair in June this year. 

At KQ, where he serves as COO and interim leader, Kamal is said by sections of the board to be key in steading operations post-Kilavuka's handover.

Allan Kilavuka, a Kenyan aviation veteran, assumed CEO duties in April 2020 after Sebastian Mikosz, inheriting a Covid-ravaged industry. He slashed costs, renegotiated leases, restructured debts, and sustained schedules despite headwinds, forging stronger alliances with partners like SAA.

Yet, thin margins, fierce competition, and unresolved maintenance arrears shadowed his watch.

He took over from Mikosz in 2020, first in an acting capacity in January and as substantive chief executive on April 1. The first thing he did was slash the salaries of staff, himself being among those who took the deepest cuts at 80 per cent, as the airline grappled with the vagaries of Covid-19.

He was named substantive CEO just days after the first case of Covid-19 was reported in Kenya. The pandemic had the effect of grounding KQ’s operations save for few cargo and repatriation flights.

At times he appeared to have figured out the formula to return KQ to profitability, which bore fruit last year when the carrier reported the first full year profit in more than a decade, reporting a Sh5.4 billion in profit after tax. 

This would however be eroded this year as in November, KQ issued a profit warning, indicating its profit for the year to December 2025 would fall by at least 25 per cent. This has been on account of grounded aircraft due to the global scarcity in spare parts, which in turn reduced its capacity.

Before joining KQ, Kilavuka had worked with Jambojet, KQ’s low cost carrier, as the chief executive officer. He had before that worked with General Electric (GE), where he held various senior roles in Kenya and South Africa.