Kenya: Air Afrik to Lay Off 200 Staff, Blames Stanbic on Taking Restructuring Process


Nairobi — Passenger and cargo carrier Air Afrik is set to reduce its work force in Kenya and South Sudan by 80 per cent in November.

This means that 200 people working in the organisation will be rendered jobless in the company as from next month after the company announced to go through a restructuring process.

The carrier hit major turbulence following the loss of a $20 million plane-leasing contract with the government of South Sudan.

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.

In a statement, the airline says that they have been forced to declare some positions redundant following some of the issues they faced with Stanbic bank.

“We understand this is a challenging time for our team, but these steps were necessitated following Stanbic Bank’s negligent errors, oversight and unlawful actions,” the company said in a statement.

According to an official letter to the Central Bank of Kenya, the South African-owned bank admits to having regrettably made an error.

Letters obtained from the Central Bank of Kenya and the Bank of South Sudan to Stanbic Bank questions why Air Afrik should suffer on account of a mistake admitted by the bank.

The bank allegedly withheld crucial information from the company as its customer, with a view to covering its negligent errors, oversights and unlawful actions.

Stanbic Bank also supposedly failed to own up and take responsibility for its own errors and oversights and compensate the plaintiff adequately for the damages and inconveniences suffered.