Pay cut: Kenya’s national carrier managers and directors now forced to take a cut nearly half of their salary in the face of coronavirus outbreak

Kenya Airways
  • African Airlines have lost more than $400m (£312m) since the outbreak of the coronavirus in China in February, according to the International Air Transport Association (IATA).
  •  To make matters worse, Kenya Airways which is counting losses by the day was already in pretty bad shape and posted a pretax loss of Sh8.56 billion ($85.6 million) in its 2019 half year earnings to June 30.
  • Chief executive Allan Kilavuka and other top managers have been forced to take a pay cut of up to 35 percent.

The Coronavirus pandemic has hit the aviation industry hard and African airlines have not been spared and are on the receiving end.

One such African airline is Kenya Airways, the pride of Africa, which is counting losses by the day having cancelled most of its flights. To make matters worse, the airline was already in pretty bad shape and posted a pretax loss of Sh8.56 billion ($85.6 million) in its 2019 half year earnings to June 30.

In a bid to stay afloat amid the coronavirus outbreak that is grounding airlines across the globe, its top managers will be taking home less next month after taking a pay cut nearly half of their salary.

Acting Chief executive Allan Kilavuka and other top managers have been forced to take a pay cut of up to 35 percent to preserve cash and cut costs. Senior managers at the national carrier will also take a 25 percent pay cut and directors work for free.

On Tuesday, in a memo addressed to staff, Mr Kilavuka, said the cost-cutting measures, aimed at keeping the company afloat during this difficult time.

“Members of the ExeCom (executive committee) too have agreed to take a 25 per cent pay cut with effect from April 1, 2020 and I have committed to a 35 percent pay cut effective the same date,” the memo said.

Our board of directors have accepted to forego their monthly fees and sitting allowances with effect from 1 April, 2020.”

The payroll cuts will take effect on April 1, 2020.

Kenya Airways has reduced flights on the London and Paris routes and suspended those to cities like Bangkok, Djibouti, Khartoum and Mogadishu as a result of Coronavirus (Covid-19) outbreak.

African Airlines have lost more than $400m (£312m) since the outbreak of the coronavirus in China in February, according to the International Air Transport Association (IATA).

It's not only the aviation industry, however, that has been battered hard by coronavirus ripple effects and forced to adjust their accounts books.

Local companies ranging from the service industry, tourism to horticulture have all taken a hit.

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