Rama Defends State-Owned Defense Firm, Signals Major Shift in Albania’s Military Industry

Albanian Prime Minister Edi Rama has publicly defended the state-owned company Kayo, led by former police chief Ardi Veliu, following mounting accusations linking the firm to alleged corruption affairs.

Speaking in a characteristically combative and ironic tone, Rama rejected claims that the company represents misuse of state power, arguing instead that Kayo was established to correct long-standing structural failures in how Albania managed foreign defense and security engagements.

“We created this state company for the state itself—so that in every engagement with foreign partners, Albania takes its rightful share. Not as it happened before,” Rama said, dismissing criticism as politically motivated noise.

A State Vehicle for Strategic Control

According to the prime minister, Kayo is designed to ensure that revenues generated through defense-related cooperation, production, and foreign access flow back to the state rather than to private intermediaries. Rama insisted that similar models exist elsewhere and that Albania is merely catching up after years of lost value and weak oversight.

He framed the controversy as symptomatic of deeper resistance to reform, noting that public debate has become fixated on a single state-owned firm while ignoring broader structural progress in defense governance and state property management.

Defense Pay, NATO Alignment, and New Capabilities

Rama also used the opportunity to underline what he described as a turning point for Albania’s armed forces. He claimed that military salaries in Albania are already the highest in the region and pledged further increases aimed at reaching average NATO pay levels in Europe.

Beyond personnel, Rama highlighted several milestones he characterized as historic:

• Deployment of a missile system in Albania through cooperation with the United States
• Transfer of two naval vessels donated by Italy
• Expansion of domestic military production, including uniforms manufactured for the Swedish Armed Forces
• Ongoing development of counter-drone systems, with initial orders already placed and results expected within the year

“This is a historic year for weapons production in Albania,” Rama said, asserting that the country now possesses both industrial capacity and international credibility.

From Importer to Producer

The prime minister’s remarks point to an ambition to reposition Albania from a marginal defense importer to a regional niche producer, particularly in light manufacturing, uniforms, and emerging technologies such as anti-drone systems. He emphasized that reforms in state property management have been essential to enabling this shift.

Despite the political backlash, Rama maintained that state involvement—when structured correctly—is necessary to protect national interests in sensitive sectors such as defense.