The Government seeks control of Kenya Airways

The Kenyan government seeks control over KQ

The Kenyan government wants a greater control in the management of Kenya Airways ahead of the scheduled recruitment of the airline’s new boss.

Treasury wants to take over the role of designating top executives at the airline. This duty was initially preserved for the Dutch airline KLM.

Although both the government and KLM have the authority to appoint two directors each to the 11-member board of Kenya Airways, KLMs previous 26 per cent stake against the governments 23 per cent gave it the right to designate KQ executives.

However, after the airlines rights issue that ended on the 30^th of April, the government of Kenya beat KLM airline to become the biggest shareholder, a position that Treasury wants to use to have more clout     

According to the KQ CEO, DR. Titus Naikuni the government wants to have a say in the choice of the airline’s top executives as it plans replace its head.

Kenyan government last month wrote to KLM to tell it of its intention to take over the management of Kenya Airways according to undisclosed sources. 

Journalists attempts to get an official comment from both Treasury and KLM have been impossible as the Finance minister Njeru Githae and his PS, Mr Joseph Kinyua have not been speaking to journalist on the same.

On the other hand, KLM is also not responsive to comments on the same.

The Kenyan government has two seats on the KQ board and is represented by Transport PS Cyrus Njiru and Finance PS Joseph Kinyua.

The other nine members of the board are non-executive, including the chairman of the board. All others, but the group managing director, group finance director and two KLM directors are subject to periodic reappointment in accordance with the firm’s Articles of Association according to the airline’s annual statement.

We can only sit and wait to see how this will come out.

Comments are welcome.