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Thursday, November 24, 2016

KQ MD MBUVI TO QUIT AIRLINE

Mbuvi Ngunze will quit as Group MD and Chief Executive Officer of Kenya Airways early next year.

A statement issued by newly appointed KQ chairman Michael Joseph said Mbuvi would leave within the first quarter of 2017 and after a successor has been named.

Joseph said he will personally lead the search for the next CEO along with the Board's Governance committee.

The CEO is exiting at a time the national carrier is weathering financial and operational turbulence occasioned by massive losses and a weak balance sheet.

The airline has earned the dubious distinction of announcing the largest corporate losses amongst listed companies losing over Sh25billion in successive years.

Mbuvi who came in as Chief Operating Officer in 2011, succeeded Titus Naikuni as CEO about two years ago.

However, the problems the airline has faced are seen to have been brewed during his predecessor's era when the airline went on an expansion spree that placed financial strains on its operations.

It has been involved in what some see as a fire sale of some of its assets including a prime landing slot at Heathrow Airport.

The Kenya Airways share closed at Sh6 (US$.06) on the Nairobi Securities Exchange.

Mbuvi is the latest senior management member to leave the airline following the exits of former CFO Alex Mbugua, former Chairman Dennis Awori and several senior management staff.

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