KQ to Conduct Mass Layoff in Major Restructuring

National Carrier, Kenya Airways (KQ) is expected to lay off hundreds of its staff following the major restructuring of the airline that was proposed by Treasury CS Ukur Yatani in the 2022/23 budget.

While reading the budget statement in parliament on Thursday, Yatani stated that the airline has been facing severe cash-flow constraints ever since the onset of the Covid-19 pandemic.

In order to reduce costs and increase revenue, CS Yatani stated that KQ will need to reduce the number of aeroplanes and destinations, which means staff layoff as well. “Kenya Airways will be required to trim its 32 network rationalise frequencies of flights, operate a smaller fleet and rationalise its staff complement,” said Yatani.

KQ has been on a loss-making streak since 2013, after reporting its last profit of Ksh1.66 billion in 2012. The airline reported a loss of KSh15 billion for the year ending December 2021, an improvement from last year’s Ksh 36 billion. “The government as a major shareholder is supporting the restructuring of Kenya Airways to adapt to the challenges facing the aviation industry due to the adverse impact of the COVID-19 pandemic,” said Yatani.

CS Yatani is expected to later announce the budget allocation meant to meet the restructuring costs of the airline.