Скачать или смотреть Kenya Airways to freeze pay in new condition from KLM

Kenya Airways’ employees are set to endure a pay freeze in the next couple of years if their employer accepts the stringent conditions that one of the major shareholders, KLM wants met before it can inject fresh capital into the ailing business.

The Dutch carrier has sought KQ’s commitment that it will keep employee costs in check as a condition for the release of 2.5 billion shillings in capital contribution.

KLM has committed to inject a total of 7.9 billion shillings into KQ as part of the ongoing restructuring, which will see its stake in the business drop to 13.7 per cent from current 26.7 per cent.

KLM’s demand is contained in a circular KQ sent to its shareholders explaining the ongoing restructuring that will also see the Treasury and 11 local banks convert 50.2 billion shillings of debt into equity.