This archive report was first published on 13 October 2019.
Published on October 13, 2019, Air Afrik is facing significant financial challenges that will result in the layoff of at least 200 employees in Kenya and South Sudan come November 2019.
The airline blames the loss of a Ksh.2 billion plane-leasing contract with the government of South Sudan for its financial woes.
According to a circular seen by Citizen Digital, Air Afrik has been reviewing its processes and has identified some roles as redundant.
‘Since the loss of the contract and the court case against Stanbic Bank, the company has been reviewing its process; fitting people into the right jobs and in the process, some roles have become redundant,’ the circular reads.
However, Air Afrik has also accused Stanbic Bank of negligence, saying the bank withheld crucial information from the company as its customer, with a view to covering its negligent errors, oversights, and unlawful actions.
The airline further faults the bank for failing to own up and take responsibility for its errors and oversights, and for not compensating the company adequately for the damages and inconveniences suffered.
‘This unfortunate situation was created by a severe lack in liquidity at the company, which resulted from failing to act diligently before freezing our funds without a valid court order,’ the statement reads.
As a result, Air Afrik is seeking compensation amounting to $14.4 million from Stanbic Bank for the losses and job cuts caused by the bank's actions.
