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Kenya

Michael Joseph can jet into KQ, shareholders say

Joseph has been termed as a resource to the airline considering his performance track record/FILE

Joseph has been termed as a resource to the airline considering his performance track record/FILE

NAIROBI, Kenya, Oct 4 – Kenya Airways (KQ) shareholders have approved to have ex-Safaricom Chief Executive Michael Joseph join the board.

The vote indicates that shareholders unanimously voted to have him replace Vincent Rague who has retired and did not offer himself for re-election.

Others directors who shareholders approved for re-election include the Treasury Principal Secretary Dr Kamau Thugge and Transport counterpart, Irungu Nyakera.

Joseph has been termed as a resource to the airline considering his performance track record.

“Michael Joseph track record is very well known, when he took Safaricom from where it was to where he handed it over to Bob Collymore. I am sure that track record played a very significant part in the nomination that we received for him to get on to the board,” Awori commented later during a media briefing after the AGM last week.

The move comes even as the management and the board continues with the turnaround strategy that will include staff reductions that may affect about 600 employees. About 80 of them have already left the airline.

The national carrier has also indicated plans to sell a stake to foreign institutional investors in a bid to raise an undisclosed amount of cash. The government is still examining proposals for recapitalisation.

The carrier is also talking to its creditors, including banks to amend terms of its debt and provide it with sufficient funds for operation in the short term.

KQ posted Sh26.2 billion net loss in its 2016 full year results impacted by Sh9.7 billion foreign exchange losses.

This is a marginal loss increase compared to Sh25 billion losses it made in 2015.

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The losses are also attributed to increased cost of borrowing in the period under review incurring an additional Sh2.3 billion in interest expense.

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