This archive report was first published on 18 September 2019.
Kenya Airways has suspended its chief financial officer, Ms Mathuka, in a move that is likely to destabilize the airline's executive suite. This development comes as the airline is still reeling from the resignation of its CEO, Sebastian Mikosz, who will be leaving at the end of December.
The suspension of Ms Mathuka follows a tumultuous period at the airline, which has been struggling to recover from years of losses. In the half year ended June, Kenya Airways made a net loss of Sh. 8.5 billion, more than double the net loss of Sh. 4 billion in a similar period a year earlier.
According to a report, the management turbulence at Kenya Airways risks further hurting the airline in the transition period when it needs to find a new leader. The report notes that chief financial officers typically step in to hold the CEO's role on a temporary basis should the search for a leader extend beyond the timeline.
Ms Mathuka's prolonged absence from work could cloud this process, the report says. The KQ CFO position at Kenya Airways has been a difficult one, with previous CFOs facing challenges such as irregular ticketing practices and wrongful termination.
As reported in 2016, Alex Mbugua, the then CFO, was awarded Sh. 144 million for wrongful termination, but the court reduced the payout to Sh. 27 million. Mr Mbugua had been sacked from the position, raising the alarm over irregular ticketing practices in some overseas stations such as London, and for recommending a review of KQ's relationship with Dutch national carrier, KLM.
