•A total of Sh82.6 million in legal fees was owed to different law firms as of last year.
•It’s net loss for the six months ended June 2020 widened by 67.3 per cent to Sh14.33 billion, blamed on Covid-19 disruptions on global travel.
Kenya Airways has spent in excess of Sh78.2 million in outsourcing legal services for the nationalisation strategy and litigations, even as the airline remains in losses.
The national carrier last week announced pay cuts which range from a maximum of 30 per cent and a minimum of five per cent (5%) for those earning above Sh45,000.
It has also announced a Voluntary Exit Programme(VEP) 2021 in a phased staff rationalization initiative to cut its wage bill, amid low revenues occasioned by reduced operations in the wake of the Covid-19 pandemic.
The carrier which has remained in losses for the past six years outsourced the services of Anjarwalla & Khanna Advocates to help develop a nationalisation strategy costing more than Sh38.2 million.
Part of the payment include invoice number 130909501 for $203,000(Sh22.4 million) and 130909504 for $143,000(Sh15.8 million), May 28, 2019.
Another law firm, TripleOKLaw LLP , was also paid in excess of Sh40 million for cases against staff(litigation), among them several redundancy cases filed at the Labour Court.
A total of Sh82.6 million in legal fees was owed to different law firms as of last year, even as the airline remains with an internal legal team.
Chairman Michael Joseph yesterday declined to comment to The Star’s inquiries on the nationalisation process and developments at the airline.
"I’m afraid I must decline at this stage. Perhaps mid-Feb when we know more," he said in a message.KQ, as it is known by its international code, has received Sh2 billion from the national government to help with its operations, currently at about 50 per cent since resumption of domestic and international flights on July 15 and August 1, last year, respectively.Group managing director and CEO Allan Kilavuka last week said the carrier is on a “cautiously optimistic recovery and rebounding journey.”“We will forge ahead with our plans for 2021 with determination. However, we are mindful that the new Covid variant will result in new travel restrictions, significantly affecting passenger numbers in our key destinations,” he said in an internal communiqué.The proposed salary cuts across the company are effective January and should run for at least 6-12 months, with a quarterly review of the proposed pay variation, Kilavuka has noted.The […]
