Air Transportation - Kenya Airways has clarified that while it will henceforth price its domestic tickets in dollars, payments can still be made in Kenya shillings. It said the purchase price will however depend on the prevailing exchange rate at the time of a ticket purchase. "We have only dollar denominated the fares that does not mean we shall not accept payment in Kenya shillings," explained KQ's Communiation Manager Chris Karanja. The airline was responding to a media report that based on the volatility of the Kenya shilling, it had resorted to only accepting payments in dollar form and not in the local currency. The report generated concern from clients and uproar from the Central Organization of Trade Unions.

The Kenya Association of Travel Agents also echoed KQ's statement adding that there had been a misconception on the issue. "The fare for local, regional, rest of Africa or international on the Global Distribution systems used by agents will be quoted in USD and offer an equivalent in Kshs at the prevailing Rate of exchange," said KATA Chief Executive Waturi Matu.

"This rate is uploaded every Wednesday and applies till the next week when the same is revised. In the case of Mpesa, the same applies."The airline's fares will swing upwards or downwards depending on current dollar rate as opposed to before when its fares were constant per route. COTU said the move was ill informed threatening to also issue a demand that the airline pays its workers in dollars as well.

Lola Okulo

Nairobi Star/26/10/2011