Kenya Airways Employees Face Fresh Pay Cuts of Up to 30 Percent

Kenya Airways (KQ) has announced a fresh round of pay cuts affecting employees earning Sh45,000 and above.

The workers will have their salaries trimmed by up to 30 percent in a move aimed at keeping the national airline afloat amid the financial woes occasioned by the COVID-19 pandemic.

KQ CEO Allan Kilavuka in a memo addressed to the airline’s employees said the payroll cuts will take effect this month and will last for a period of between six to 12 months.

“The proposed pay cuts range from a maximum of 30 percent and a minimum of 5 percent for earnings above 45,000.”

“We have also proposed that any staff across the network who earns the equivalent of less than 44,999 will have no pay variation for now. The salary used to determine the pay ranges is your basic pay and all fixed allowance,” the memo reads in part.

“The local currency amounts will be converted and fixed at the appropriate exchange rates for outstation staff.”

Further to this, Kilavula said the company will not pay deferred salaries accrued since April last year.

“I must stress that we cannot pay these amounts, and further, we do not have a timeline when payment will be possible. Should our financial and ability to pay improve significantly, we will redeem the differed amounts,” he noted.

“Our proposal, however, is that, as soon as we get a sustainable cash injection that can cover our overdue, we will, at that time, commence discussions on the payment of the deferred salaries. Similarly, should our financial situation and ability to pay improve significantly, we will redeem the deferred amounts.”

10 months ago, KQ senior managers including CEO Kilavuka took a 25 percent pay cut to preserve cash and cut costs.

The airline’s net loss for the six months ended June 2020 grew by 67.3 percent to Sh14.33 billion attributed to Covid-19 disruptions that led to the grounding of flights.