Fresh Pay Cut for KQ Top Managers over Coronavirus Pandemic

Two days after Kenya Airways chief executive Allan Kilavuka and other top managers took a pay cut of up to 35% to preserve cash and cut costs amid the coronavirus outbreak, it has announced a further salary cut for the chief executive and top management team beginning April 1, 2020.

“My communication on March 17 regarding the 25% pay cut for the Leadership Team and 35% for myself has been superseded as the situation has evolved significantly,” said Kilavuka.

In the statement by the Chief Executive on Saturday, March 21, 2020, Mr. Allan and top managers will take an 80% and 75% pay cuts respectively to cushion the firm from additional losses in the wake of the coronavirus pandemic.

The CEO also stated unpaid leave for a number of employees from April 1 until the situation changes for the better as the world battle the deadly virus adding that “beginning April 1, all employees at grade H06 and above will be on a week paid and three weeks’ unpaid leave while those at H05 and below will be on two weeks paid and two weeks’ unpaid leave.”

Others that will do with less cash in their bank accounts include the executive committee members, who have also agreed to take a 25% pay cut from the same date.

“All employees who will not be required at work will take their annual leave with immediate effect, while those required on duty will be on 25 percent or 50 percent pay subject to your grade,” noted Mr. Allan.

Kilavuka, said the new pay cuts were not penalties, but measures in response to the ongoing pandemic that has hit the local aviation industry hard following the government ban on airlines flying in from countries that have reported coronavirus cases.