Kenya: Inside State House deal that helped avert KQ pilots strike

Business Daily (Kenya)
Content provided by Asianet-Pakistan

Sources say President Uhuru Kenyatta’s chief of staff, Joseph Kinyua promised the Kenya Airline Pilots Association (Kalpa) prompt action against top KQ officials. PHOTO | FILE Nation Media Group

ByMUGAMBI MUTEGI and MUTHOKI MUMOPosted Tuesday, October 18 2016at 10:25

National carrier Kenya Airways escaped a potentially crippling pilots’ strike after State House waded into the dispute and promised that some big heads will roll by end of month.

People familiar with the negotiations said the pilots only agreed to suspend the industrial action after the government, which is an anchor shareholder in the airline, committed to overhaul the airline’s management meaning senior KQ managers may be asked to leave.

A source who attended the negotiations told the Business Daily that President Uhuru Kenyatta’s chief of staff, Joseph Kinyua, promised the Kenya Airline Pilots Association (Kalpa) prompt action against top KQ officials named in an audit report as being responsible for the airline’s troubles.

It was announced at a Press conference at KICC, Nairobi, late evening that former Safaricom CEO Michael Joseph would take over as KQ chairman.

KQ pilots have demanded the exit of the airline’s chief executive, Mbuvi Ngunze, and chairman Dennis Awori, accusing the duo of presiding over the mismanagement of the publicly-listed firm, leaving it desperate for a bailout to the tune of Sh60 billion.

Mr Kinyua and Solicitor-General Njee Muturi were said to have initially met the Kalpa leadership at State House Nairobi on Sunday evening and followed up with two meetings on Monday morning at two Nairobi hotels.

State House’s intervention came just a day before the pilots’ strike and sought to save the carrier which is 29.8 per cent government-owned from losing hundreds of millions of shillings in revenue.

Mr Kinyua’s promise follows Transport secretary James Macharia’s assurance last week that action would be taken against those named in the audit report prepared by consulting firm Deloitte.

« In light of the fruitful discussions held between Kalpa’s executive council and the government, we have taken the decision to defer the strike action to accommodate the ongoing negotiations, » said the Kalpa secretary-general Paul Gichinga.

Yesterday, Kalpa said in a statement that it was not retreating from the strike but had decided to give dialogue a chance.

« We emphasise that we are not retreating from our initial position change for Kenya Airways can only be achieved with an overhaul in leadership. We also wish to confirm that as an association with heavily vested interest in Kenya Airways, we remain committed to contributing in every meaningful way to the airline’s recovery and transformation, » the pilots said in the statement.

Kalpa’s list of bad managerial decisions that cost KQ billions of shillings includes costly agreements with travel agents, the alleged sale of aircraft at throwaway prices and irregular leasing of others without proper documentation.

The pilots also opposed the management’s decision to sell prime London parking slots that were at the core of KQ’s attractiveness to London-bound business travellers and continued stay in an unprofitable relationship with Dutch carrier KLM.

KLM owns 26.7 per cent of KQ.

Mr Kinyua’s promise, which prompted the pilots’ decision to defer the strike, is part of the government’s concerted effort to avert the industrial action, which was announced a week ago.

Click here for reuse options!
Copyright 2016 actualité africaine

afrika54news

ACTUALITÉ AFRICAINE À TOUTE HEURE

You May Also Like