Kenya Airways (KQ) recently held its 47th Annual General Meeting (AGM), where the airline’s management and shareholders expressed optimism about its ongoing turnaround efforts.
The AGM, led by Board Chairman Michael Joseph, presented an opportunity to review the airline’s performance and discuss future plans for sustainable growth. With a focus on cost-cutting measures and increased operational efficiency, Kenya Airways aims to achieve business recovery by 2024.
During the AGM, shareholders voted on various resolutions in line with the company’s Articles of Association, the Companies Act, the Capital Markets Act, and its Regulations. These resolutions included the approval and adoption of the audited Financial Statements, the Balance Sheet for the year ended December 31, 2022, the Directors’ and Auditors’ Reports, and the Directors’ Remuneration as outlined in the Annual Report and Financial Statements.
Significantly, the shareholders also voted on resolutions recommending the election of new directors, including Dr. Haron Sirima, Mohamed Daghar, Christopher James Buckley, and David Kabeberi.
Addressing the shareholders, Board Chairman Michael Joseph highlighted the positive progress made by Kenya Airways in 2022. The airline’s restructuring and transformation efforts resulted in an impressive 66% increase in revenue, amounting to KES 117 billion. This growth was primarily driven by a significant rise in passenger numbers, which soared by 68% to reach 3.7 million passengers. Additionally, cargo tonnage experienced a 3.5% increase, totaling over 65,000 tonnes.
CEO Allan Kilavuka emphasized the resilience of Kenya Airways, noting the airline’s ability to leverage the surge in travel demand through increased frequency and improved service offerings. Despite challenges such as a 160% year-on-year increase in fuel costs and the impact of currency depreciation on direct operating costs, Kilavuka expressed confidence in the restructuring initiatives implemented in 2022.
In addition to the AGM proceedings, Chairman Michael Joseph announced the retirement of Caroline Armstrong, who had served on the Board for nine years. Armstrong’s contributions, particularly as Chair of the Human Resources Committee, were acknowledged as invaluable to the company’s growth and development.
The airline says it’s on track to achieve its aspiration of becoming a profitable and sustainable airline in the coming years. Project Kifaru, as the initiative is called, marks an essential step for Kenya Airways in its journey towards sustainability.
However, the airline’s debt load, estimated at Sh189.3 billion ($1.347 billion), remains a challenge. To ensure long-term success, attracting a strategic investor is crucial for comprehensive debt and capital restructuring.
