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    Assistant Director, Fintech and Innovation, BoG, Clarence Blay

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    Farmers worried about possible unfair distribution of MoFA machines

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    Importers, Exporters Association calls for sympathy for Labianca following corruption claims

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    Assistant Director, Fintech and Innovation, BoG, Clarence Blay

    E-cedi will not affect MoMo business – Bank of Ghana

    Bank of Ghana to widen its scope on cryptocurrency

    Importers, Exporters Association calls for sympathy for Labianca following corruption claims

    BoG Deputy Governor chairs advisory board of UG’s College of Humanities

    GEXIM CEO is one of Ghana’s 100 most influential business leaders

    Zenith Bank Ghana wins premium quality West African banking brand of the year 2021

    GIPC and GSE sign MoU to attract more investment into Ghana

    Appolonia City unveils its first commercial building; Adumuah Place

    Dr. Ampabeng advocates consolidation of road taxes into fiscal policy

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    We’re ready to re-engage gov’t on acquisition of Vodafone shares – Telecel

    New deadline for SIM re-registration too short – MoMo agents association

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    Assistant Director, Fintech and Innovation, BoG, Clarence Blay

    E-cedi will not affect MoMo business – Bank of Ghana

    Farmers worried about possible unfair distribution of MoFA machines

    Bank of Ghana to widen its scope on cryptocurrency

    Importers, Exporters Association calls for sympathy for Labianca following corruption claims

    Our cars to sell for cheaper soon- locally assembled automobile companies

    BoG Deputy Governor chairs advisory board of UG’s College of Humanities

    Ghana’s inflation rate rises again; hits 31.7% in July 2022

    Fitch downgrades Ghana’s credit rating from B- to CCC

    Côte d’Ivoire-Ghana Cocoa Initiative clarifies its stance on origin differentials for cocoa beans

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    Assistant Director, Fintech and Innovation, BoG, Clarence Blay

    E-cedi will not affect MoMo business – Bank of Ghana

    Bank of Ghana to widen its scope on cryptocurrency

    Importers, Exporters Association calls for sympathy for Labianca following corruption claims

    BoG Deputy Governor chairs advisory board of UG’s College of Humanities

    GEXIM CEO is one of Ghana’s 100 most influential business leaders

    Zenith Bank Ghana wins premium quality West African banking brand of the year 2021

    GIPC and GSE sign MoU to attract more investment into Ghana

    Appolonia City unveils its first commercial building; Adumuah Place

    Dr. Ampabeng advocates consolidation of road taxes into fiscal policy

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    We’re ready to re-engage gov’t on acquisition of Vodafone shares – Telecel

    New deadline for SIM re-registration too short – MoMo agents association

    Extend SIM card re-registration exercise to January 2023 – MoMo agents

    Vodafone agrees sell stake in Ghana’s business to Telecel

    Telecoms Chamber and IIPGH advocate sustained coding education

    IIPGH to enter coding education partnership with Telecoms Chamber

    PayAngel joins Microsoft for Startups Founders Hub

    Node 8, HTU hold first edition of Node X in Ho

    Financial transactions will be allowed even without Ghana card from 1st July – GAB assures

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    Agribusiness entrepreneurs must take advantage of AfCFTA – ADB MD.

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    African countries that could follow Sri Lanka into economic chaos

    Africa’s internet economy to cross $180 billion by 2025: Report

    Regional economic cooperation needed to enhance Africa’s competitiveness – Bawumia

    Ivory Coast is set to receive $26.1 billion worth of development finance from 4 lenders, the EU and France

    Gulf central banks, Bank of England raise policy rates after Fed hike

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Kenya:Treasury gives KQ Sh10bn loan for turnaround plans

bycitibusinessnews
July 13, 2016
in Africa, East Africa, Top Stories
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Troubled national carrier Kenya Airways has received Sh10 billion soft loan from the National Treasury, giving the airline muscle to implement its turnaround strategy.

The government borrowed the cash from China’s Exim Bank on behalf of KQ whose fortunes have dwindled in the last five years hurting its ability to book debt on its own.

“We have already disbursed to KQ because this money was for on lending,” said Treasury secretary Henry Rotich.

The loss making firm declined to reveal how it plans to spend the cash saying it is in a closed reporting period.

The airline, which shocked the market with a Sh25.7 billion after tax loss last year, is expected to release its full-year results at the end of the month.

Retrenchment costs are expected to be key in the management agenda following the delay of planned job cuts due to lack of funds.

The loss-making company had announced plans to lay off 600 workers beginning May but did not start the process until last week — soon after the cash was made available.

The company sent home 80 employees on Sunday as the powerful Kenya Aviation Workers Union said it did not expect further retrenchments.

KQ has concurred with the union that the number will be lower than earlier announced due to effects of natural attrition and talks with the union.
Four years back, KQ spent Sh826 million to fire 599 employees in a process that was challenged in court.

Recent retrenchment exercises undertaken by listed companies have proven to be a costly affair with National Bank of Kenya spending Sh1 billion to send home 200 employees in 2014 while Barclays Bank spent Sh788 million a year earlier to lay off 170 workers.

KQ expects to save Sh2 billion annually from the staff cuts. The airline’s staff cost has grown by 51 per cent in the past five years to Sh16.96 billion for the year ended March 2015 compared to Sh11.2 billion in 2011. Its workforce stood at 3,973 as at March last year.

The national carrier targets to save Sh20 billion in the turnaround plan dubbed Operation Pride.

This is the second tranche of a Sh20.2 billion debt taken by the Treasury on behalf of the company. The government owns 29 per cent of the airline.

Taking the loan through the Treasury allows KQ enough room to craft a repayment plan that does not pile pressure on its balance sheet, which is already heavy with debt and has forced the airline to sell some of its assets.

–

Credit: Business Daily

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