Listed national carrier, Kenya airways (KQ) says it has dismissed around 80 employees in the first phase of its staff rationalization program which was to begin in May.
The airline’s management said a delay in funding of about of KSh10 billion from the Africa Export Import Bank (Afrexim Bank) slowed the process. The airline expects that when the whole exercise is complete, approximately 600 members of staff being declared redundant and over Ksh 2 Billion will be saved.
Also Read: Kenya Airways to sack 600 workers from May
“We issued a notice to right size through staff redundancies and redeployment on March 31 as required by law and an update was issued to staff on May 4 following intense consultations with all parties involved,during this period we have stress-tested the accuracy of our right-sizing estimates in order to ensure that we have identified all possible ways to retain staff as well as securing the airlines long term operational efficiency,” Kenya Airways said in a statement.
In order to return to profitability, the Board said it reviewed various options and had to come to the painful decision that part of the required overhead savings will be derived from a decrease in staff headcount.
Share Price
Over the last one year, KQ stock has shed over 41.26 % of its value at the Nairobi Securities Exchange. On Friday, July 8, the counter was trading at Ksh 4.20, this is 13.51% below its 1 year low of Ksh 3.70.
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Sources; Kenya Airways, Kenyan Wallstreet, FT
