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Business & Finance

Kenya Airways Lost Sh1.1 Billion to a Mechanic And His Wife

Kenya Airway
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A report prepared by auditing firm Deloitte has exposed shocking details on how a Kenya Airways (KQ) mechanic colluded with his wife to earn over Sh1 Billion from the troubled carrier.

The audit report revealed that a mechanical engineer, his wife, and a procurement manager formed a company that was hired by one of KQ’s suppliers to offer professional services on a commission basis.

In a clear case of a conflict of interest, the KQ employees happened to be the very same ones who were involved in the procurement of the airline’s engine parts.

According to the audit, the company formed by the mechanic at one time earned more than Sh1.1 Billion commission after offering consultancy services to a major KQ supplier.

The mechanic, who was a manager in the engineering department, also provided bidding information to an aircraft supplier contrary to the airline’s and Kenya’s tendering procedures.

“It is unclear why the manager consulted the lessor on the choice of end of lease return projects even after highlighting the strict tender guidelines. During our interview with him, he speculated that the reason why he had told the bidder to adjust the prices was because he could have already been selected as the preferred bidder. We, however, ascertained that the bidding process had not yet been completed at that stage,” the audit report states.

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The employees have since been recommended for disciplinary proceedings for non-disclosure of their interests in private businesses with the airline via its suppliers.

The audit report is part of the national carrier’s strategy that is expected to help it turning around its dwindling fortunes.

The company’s board recently announced that their CEO Mbuvi Ngunze and Board Chair Dennis Awori would be leaving their positions at the end of this month.


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