Transport Cabinet Secretary James Macharia has revealed that the government is working closely with the Kenya Airways (KQ) board to evaluate the flyers entire management and have the best bosses running the company.
“We’re changing management at all levels. This is not a secret. You’ve seen us asking people at senior levels to leave,” he said. It has further been revealed that staff rationalization at Kenya Airways (KQ) was still at its peak.
“We’re reviewing the entire structure of management to make sure we have the best people running that key corporate,” CS Macharia said.Some of the heads at the national airline that have since left include the Human Resource Director Alban Mwendar who resigned in April this year and Alex Mbugua, the long serving Finance Director who was sacked in January 2016. Others include Director Corporate Quality, Safety, Security and Environment Alex Avedi and Captain Paul Mwangi who was dropped as Director for Flight Operations but remains a Kenya Airways pilot.
KQ’s poor performance has been blamed on bad strategies by the management which led to KQ posting a record Sh25.7 billion loss in the 2014/2015 financial year. African Export-Import Bank (Afrexim) last year agreed to lend KQ Sh20 billion as a bridging loan to ease its immediate cash-flow constraints, even as it seeks Sh60 billion injection in equity or debt.
CS Macharia maintains that the board is working on ways to raise funds to bail the ailing carrier, but in any case bailout will not come until a proper management is in place. The government which has a 29 per cent stake at KQ has supported the ongoing cost cutting activities as this would help it start on a new page once there is proper financing. “What we’re doing is to sit with the Board of Directors to see how we can help them to raise money to restore the financial viability of the airline. We’ve come very far. If you look at the kinds of things which have been done to trim down to reduce the fat, I believe going forward you’ll see a very big impact,” the CS added.
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