Former Kenya Airways (KQ) Chief Executive Officer Titus Naikuni has refuted claims that he was embroiled in corruption at the airline.
Naikuni told a Senate committee inquiring into the troubles gripping the airline that he was not aware of any corruption at KQ, claiming that the hiring of staff during his tenure was above board.
He told the committee, chaired by Kisumu Senator Anyang’ Nyong’o, that the plan to outsource staff to replace those retrenched to cut production costs met international standards. He added that the staff were licenced by the Kenya Civil Aviation Authority.
Naikuni blamed the company’s troubles on terror attacks that, he said, reduced passenger numbers. The low passenger numbers affected the expansion plans of the company that had seen them invest in more planes, the former CEO said.
KQ announced a full year loss of Sh25 billion, shocking many and raising questions about how the company is run.
Naikuni’s statement follows queries on staffing as KQ is grappling with labour disputes after retrenching employees.
The committee also raised concerns about an agreement between KQ and Dutch airline KLM, saying it does not favour the national carrier. But Mr Naikuni defended the joint venture as blameless for the Sh26 billion loss posted by the airline in the last financial year.
The profit-sharing formula between the two airlines increased from 40-60 to 50-50 after his intervention when he assumed office, he added.
