Nipate
Forum => Kenya Discussion => Topic started by: RVtitem on October 01, 2016, 08:22:53 PM
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Kenya Airways paid consultancy firm McKinsey and Company a staggering Sh2.3 billion in six months at a time the airline is struggling to remain afloat.
Invoices seen by The Standard on Saturday show that the consultancy firm, which is helping the airline implement its restructuring plan, has been drawing about Sh43 million every week since March this year as weekly fees.
This has emerged as one of the most expensive consultancy bills in Kenya's corporate scene, even as management continues to defend itself against concerns that it may not be getting value for money.
The Standard on Saturday shared with the airline’s boss a copy of the document detailing the invoices by the consultancy firm in an effort to establish if the money it was being paid was in line with industry standards.
Mbuvi Ngunze, Kenya Airways Chief Executive Officer declined to comment on the specifics of the contracts because of privacy clauses, but maintained the company had been awarded the contract competitively.
http://www.standardmedia.co.ke/mobile/article/2000217965/how-loss-making-kq-paid-firm-sh2-3b-in-six-months?pageNo=1
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When the Senate Select Committee inquiring into the affairs of Kenya Airways, which I chaired, submitted its report to the Senate in November last year, the Senate unanimously endorsed the report and its recommendations. We had discussed this report with the Ministers of Finance as well as Transport and hard emphasised the need to overhaul the management of the airline in order to ensure that the turn around exercise is successful. This was a result of some comparative studies we had done of airlines under similar circumstances and how they were turned around.
A very recent and living example is that of Malaysia Airlines which has a very comparable history with Kenya Airways. There is therefore no reason why Kenya Airways should fail when this South East Asian airline underwent much more daunting financial hazards before it was turned around as recently as 2005. Let us look at its experience briefly. The only reason that can make Kenya Airways slide into oblivion is if there are certain well placed and ravenous state connected business interests who are bent on running down the shares of the national flag carrier so as to buy it for a song. We have seen this happen to Uchumi Supermarkets; it could easily happen to Kenya Airways under our nose.
www.the-star.co.ke/news/2016/10/01/the-challenge-of-turning-around-kenya-airways_c1428380
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The service sucks on Kenya airways. Malaysia truly asia airlines have good service but sold their soul to the devil by sacrificing passengers once in a while. What is it like a dozen of their planes have now vanished? That consultancy firm def. smells fishy.
http://www.abc.net.au/news/2016-07-29/wing-part-found-in-tanzania-is-highly-likely-from-mh370/7674166
How did a missing plane wing end up in Tanzania ??