Kenya Airways' Pilots Strike
7 November 2022
Good Morning.
Kenya Airways' Pilots Strike
From 06:00 on Saturday, several pilots from Kenya Airways refused to fly, which led to the cancellation of more than two dozen scheduled flights, affecting approximately 10,000 passengers.
Background
The pilot strike was called to action by the Kenya Airlines Pilots Association (KALPA). The dispute has been over working conditions and wages at Kenya Airways. The union claimed that the African carrier has consistently refused to consider their suggestions for how to address these grievances.
(KALPA) had issued a 14-day strike notice on October 19, citing four reasons:
The Pilots want the board and executives ousted for:
Undisclosed governance and leadership issues,
Failure to implement pay agreements (CBA
Alleged victimisation of Kalpa members
Non-payment of monthly pension contributions for staff
Effect of the strike
Kenya Airways estimated that the strike would cause it to lose approximately 300 million shillings ($2.5 million) a day.
6000 tons of cargo has been affected.
In the second day of the industrial walkout, more than 20 planes were grounded as the number of flight cancelations increased.
INSURANCE
GA Insurance stops comprehensive insurance cover for certain vehicles
GA Insurance Limited announced that it would not provide comprehensive covers for at least six motor vehicle models in Kenya, citing unacceptable losses from the policies.
The firm wrote to its business partners, stating that it would no longer issue comprehensive covers for Toyota Probox, Toyota Succeed, Toyota Sienta, Toyota Passo, Toyota Porte and all Suzuki models valued at less than Ksh 1 million.
“After a comprehensive review of our motor private book and the loss trends, we wish to communicate that there are vehicles whose usage has been misemployed and therefore have proven to be a challenge when settling claims,” - GA Insurance
A comprehensive cover offers to compensate for losses from multiple risks including theft, fire, vandalism and damage to the vehicle.
Claims under this type of cover can be rejected for several reasons such as use of a private vehicle for commercial purposes or vice versa
MOBILE MONEY
1. Safaricom to Reinstate Charges on Bank-to-Mobile Money Transactions
Safaricom is seeking to reinstate charges on bank to mobile-money transactions and seeks to hold talks with the Central Bank of Kenya (CBK) on the same.
Safaricom Chief Executive Peter Ndegwa in an interview stated that the charges could be reinstated at a lower rate, just as it happened with the charges on transactions of KES 1,000 and below, which had also been waived but were later restored.
The free bank-to-mobile money wallet transactions was one of the emergency measures introduced by CBK on March 16, 2020 to encourage the use of mobile money instead of cash as a means of curbing the spread of COVID-19.
2. Risky borrowers to pay more to access M-Shwari loans
Risky borrowers will pay more to access M-Shwari loans as Safaricom and NCBA Group plan a new lending model with different charges based on the credit profile of customers.
NCBA chief executive John Gachora said the bank would roll out a risk rating model for M-Shwari akin to that of commercial banks.
Banks use a base rate which is normally the cost of funds, plus a margin and a risk premium, to determine how much they charge a particular customer.
Risk rating model
For M-Shwari, it will mark a departure from the current model where it charges a flat rate of 9.0 percent—loans fees of 7.5 percent and excise duty of 1.5 percent—for all customers.
NCBA will rely on an algorithm that builds a financial profile of customers based on their previous borrowing on the platform, M-Pesa transactions and airtime purchases.
ENERGY
Depot tariffs for oil marketers raised by EPRA
The Energy and Petroleum Regulatory Authority (Epra) has raised the depot tariffs for oil marketers evacuating fuel from KPC’s (Kenya Pipeline Company) Nairobi fuel depot to Sh2,526.6 per cubic metre until July next year from Sh2,074.5.
The tariffs are reviewed every three years
The charges cater for the costs KPC incurs for pumping fuel through its pipeline, pipeline losses, the costs of evacuating the fuel to tankers, depot losses, and the costs of delivering the fuel to petrol stations that are within 40 kilometers of Nairobi.
- The extra costs are expected to be passed on to consumers through higher fuel prices - EAST AFRICA
1. Ethiopian Government and the Tigray People’s Liberation Front (TPLF) signed a peace deal
Last week, the government of Ethiopia reached a cessation of hostilities agreement with the Tigray People’s Liberation Front (TPLF), signalling an end to a two-year war in the north of the country.
According to United Nations estimates, more than 800,000 civilians may have died since November 2020, most of whom being indirect casualties of the war, through lack of food or medical supplies. Another two million may have been displaced, internally, or as refugees in neighbouring Sudan.
2. Precision Air plane crashes in Lake Victoria
Tanzanian commercial flight operated by Precision Air crash-landed in Lake Victoria on Sunday, killing 19 people. The country’s Prime Minister, Kassim Majaliwa, said officials believe all bodies have been recovered from the airplane.
The flight, with 39 passengers and four crew members, had taken off from Tanzania’s commercial capital of Dar es Salaam and was headed to the town of Bukoba before it plunged into Lake Victoria as it was preparing to land.
“We’re starting to pull out the luggage and personal items from the aircraft. A team of doctors and security agencies have started the process of identifying the dead and notifying the families,” Majaliwa said.
WHAT YOU MIGHT HAVE MISSED
Airlines to Resume Direct Flights to Diani Airport
Airlines will now resume direct flights to Diani after the Kenya Airports Authority (KAA) completed the rehabilitation works at the Diani Airport runway, boosting its capacity ahead of the December festivities.
Visitors to the South coast can now fly directly to the airport without having to terminate their flights at the Moi International Airport, Mombasa then travelling by road and ferry to Diani.
Kenyan Traders seek to seal Djibouti miraa market deal
Miraa traders are seeking the government’s help to secure market in Djibouti after exporting eight tonnes in two weeks. The Nyambene Miraa Traders Association stated that one flight ferried three tonnes while the second one took a consignment of five tonnes.
The exploratory chartered flights have been stopped by Djibouti buyers, citing a need to inspect miraa farms and handling standards, and to meet traders to explore the reliability of supply.
UN Climate summit kicks off in Egypt
World leaders are set to discuss action to tackle climate change, at the UN climate summit in Egypt. The summit follows a year of climate-related disasters and broken temperature records.
UN climate summits are held every year, for governments to agree steps to limit global temperature rises. They are referred to as COPs, which stands for "Conference of the Parties". The parties are the attending countries that signed up to the original UN climate agreement in 1992.
COP27 is the 27th annual UN meeting on climate.
Newly appointed Cabinet Secretary states that Government will no longer fund public universities
Education Cabinet Secretary Ezekiel Machogu stated that the government would no longer fund public universities and colleges urging them to find ways of generating their own-sourced revenue.
Machogu said institutions of higher learning must generate their own revenue to survive as opposed to relying on funds from the government.
Always informative, thank you!
Thanks for this. A great way to get informed on key local and global matters from the week's get go.