13 November 2012

Kenya: Githae Says Treasury to Keep Off KQ

FINANCE minister Njeru Githae has said that the Treasury, the single largest shareholder at Kenya Airways, will not interfere with airline's management.

Githae maintained that KQ is not a state parastatal and as such major decisions at the airline are taken by the board of directors. The Treasury has 29.8 per cent stake in the airline while KLM has a 26.73 per cent interest.

"We have no intention of micro-managing Kenya Airways," Githae said on the sidelines of a 2013/2014 budget public hearing forum. He however said that the recent staff retrenchments should have been done in a more humane way.

Githae nevertheless added that there is no intention whatsoever of spearheading for a replacement for current chief executive Titus Naikuini. Calls have been rising for management change at the airline following a Sh6.5 billion half-year pre-tax loss.

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