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{
    "id": 613956,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/613956/?format=api",
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    "content": "The Committee, during the inquiry, held a total of 41 meetings, visited the Kenya Airways hub and received submissions from a large number of both individuals and corporate entities. The Committee also held a number of meetings with the Kenya Airways Board. When we could not meet certain individuals and entities, we wrote letters with specific questions seeking answers that could shed light on the issues at hand. Mr. Temporary Speaker, Sir, among the submissions that were received by the Committee and that revealed vital information included the minutes of the Board of Directors, financial statements, confidential management letters from the airlines’ auditors and aircraft purchase and leasing contracts. The Committee analyzed these and other documents and submissions and deciphered a trail of actions and decisions indicating poor management practices over time. In this regard, the Committee established a legal sub-committee which carefully interrogated the submissions. It is imperative to note that Kenya Airways may not have done anything illegal, but our Committee can conclusively state that the current situation bedeviling the national airline is a direct result of bad decisions made over time by individuals given the responsibility to steer the company. In that regard, the Committee is unanimous that those decision makers must be held to account for the sorry state of affairs in which the company now finds itself. Mr. Temporary Speaker, Sir, The Committee was cognizant that even as this inquiry progressed, various court cases touching on human resources matters in the organization were still pending in court. The Committee was throughout the progress guided by our Standing Order No.92 on the rules of natural justice. The Committee unearthed, among other issues, a deliberate attempt by management to force dubitable expansion plans of the Airline despite expert advice against this. The much famed Mawingu 10 year project was a highlight of these schemes; a grand project, no doubt costing the airline colossal sums of money and eventually landing the company into unsustainable debt levels and a diminishing market share, both locally and abroad. This coupled with a loss inflicting fuel hedging regime and a shift towards outsourcing of critical labour had sunk the company to lows never witnessed before. Mr. Temporary Speaker, Sir, granted that the global environment in the aviation industry has proved difficult for many airlines over the last decade, there are many examples where sound and imaginative management has made certain airlines to weather these storms. This has been achieved by minimizing risks, reducing on operation costs, capitalizating on efficiency gains, improving customer satisfaction, motivating the workforce to maximize productivity and maintaining sound profit margins. Mr. Temporary Speaker, Sir other airlines, faced with grueling competition from the Gulf airlines haves kept afloat admirably led by management team capable of rising to the occasion. As I speak today, for example, Malaysian Airline has just entered into a partnership with Emirates with a code-sharing agreement which is likely to make Malaysian Airline recover from its terrible loss of two Boeing Aircraft in the year 2014. The Committee, therefore, made the following observations: The committee has observed, and this report will show that Kenya airways has been mismanaged and any The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}