Government to restructure Kenya Airways, Treasury CS Henry Rotich says
National Treasury Cabinet Secretary Henry Rotich. PHOTO | NJUGI NGUGI | NATION MEDIA GROUP
What you need to know:
- The government has asked KQ to provide a restructuring plan before receiving any financial assistance.
- The 10-member Senate committee is chaired by Kisumu Senator Anyang’ Nyong’o.
Top Kenya Airways managers could be sacked as the government prepares to steer the airline back to profitability.
National Treasury Cabinet Secretary Henry Rotich told a Senate committee on Tuesday that the government had “demanded a massive change of management” before giving any finances to KQ.
According to Mr Rotich, the government is also consulting shareholders to restructure the airline's board members.
The Treasury CS said the government had asked KQ to provide a restructuring plan before receiving any financial assistance.
The 10-member Senate committee is chaired by Kisumu Senator Anyang’ Nyong’o.
KQ posted a Sh25.7 billion loss that it blamed on competition from Middle East carriers and high operating costs.
The airline also blamed travel advisories that led to a slump in the tourism industry, as well as runway closures for renovation, for eating into the company's 2014/2015 full-year earnings.
