More heads may roll at Kenya Airways as the ill-fated Mawingu expansion plan starts to claim its casualties, only days after the airline fired its finance and fleet directors.

Mid-week, the carrier sent home its long-serving finance director Alex Mbugua and fleet director Rick Sine. Kenya Airways board chairman Dennis Awori did not disclose the reasons for the sackings but The EastAfrican has learnt that they are part of the board’s deal with the government to meet its bailout terms.

Transport Cabinet Secretary James Macharia told The EastAfrican that more senior management changes are expected at the airline as it starts implementing its restructuring plan.

“What we are looking at is a total package for Kenya Airways. What is happening now is that some decisions have to be taken. We consider those changes necessary. It’s an ongoing process and we anticipate more changes in the management and the operational structure of the business,” said Mr Macharia.

READ: ‘Project Mawingu’ strategists had their heads in the clouds

The EastAfrican has also learnt that Treasury and KLM, the airline’s top two shareholders, are in discussions over a long-term bailout proposal, entailing either debt or equity financing.

Under the plan, Treasury is also expected to increase its shareholding in the airline to 50 per cent, from its current 29.8 per cent, through a possible rights issue. This will give it total control of the airline.

Last September, Treasury made it clear that it would only start talks on a $600 million recovery plan if the senior management were overhauled, a position the Senate approved.

National Treasury Cabinet Secretary Henry Rotich also said that more heads will roll as the government and the carrier’s board implement the turnaround plan for the airline.

“We have agreed on the turnaround plan and what we are seeing are the stages of implementation,” said Mr Rotich.

The ambitious Mawingu project has been blamed for the losses the company has been posting in the past few years.

The Project Mawingu was rolled out five years ago with the intention of positioning Nairobi as a hub of flights from the wider Asian market.

It also involved an ambitious fleet expansion that saw the airline retire some fleet while modernising it through the purchase of the Boeing 787-Dreamliners.

This was actualised despite consulting firm Deloitte warning the airline’s management against the timing of the rollout, because it was only a year after the launch of the open-sky policy.

Mr Mbugua and Mr Sine were part of the lead team that implemented the now controversial project under the tenure of former chief executive Titus Naikuni. Mr Mbugua served as KQ’s group finance director for eight years, having been appointed in July 2008.

He has been replaced in an acting capacity by Dick Murianki, who served as the general manager for the airline’s cargo business.

Are sackings cosmetic?

Already, the Kenya Airlines Pilots Association (KALPA) has termed the sackings cosmetic, mostly because their replacements are deemed part of the old management regime.

KALPA secretary-general Captain Ronald Karauri questioned the airline’s business strategy and deteriorating employee relations. 

“We feel that the management is not being honest with these changes. You cannot have the same people who have been in the senior positions moved around within the firm and claim to be making changes. We want the whole team gone” said Mr Karauri.

In December, Kenya’s Senate called for the disbandment of the airline’s leadership team, and engagement with experts who have sound knowledge and experience in commercial aviation.

The Senate also recommended the hiring of a new marketing director with proven international experience to fix its ticketing system and ensure proper accounting revenue.

A reconstitution of the board of directors and review of tax holidays by the National Treasury was also recommended.