Kenya Airways parent company in urgent talks to nationalize operations

Kenya Airways PLC is in talks with the government for possible collaboration and restructuring of operations.

In a statement, board chairman Michael Joseph also cautions shareholders and investors on dealing in Kenya Airways’ securities until a further announcement is made.

“Kenya Airways PLC has been in discussions with the Government with respect to collaboration between KQ and other stakeholders in the Kenyan aviation industry, including a possible restructuring of the operations and corporate structure of KQ,” he says.

He adds: “To this end, the National Aviation Management Bill 2020 that sets out the legal framework for the nationalisation of KQ has been tabled in Parliament. The nationalisation (completion of which would be subject to all applicable legal and regulatory approvals) may, once confirmed in greater detail, have a material effect on the price of KQ’s securities.

Accordingly, shareholders and investors are advised to exercise caution when dealing in KQ’s securities until a further announcement is made.”

KQ staff restructuring

KQ chief executive Allan Kilavuka in a memo to staff recently said: “A decision has been reached to carry out an organisation-wide rightsizing exercise which will result in a reduction of our network, our assets and our staff. Effectively, we have commenced a phased staff rationalisation process, which we expect to conclude by September 30 2020.”