The cost cutting measures are ranked in terms of impact...high,medium and low...then there is a monitoring tool that will be checked every Mon if a Manager fails to achieve his or her cost cutting goal anaenda home...we obviously did not need McKinsey to make KQ get serious but with all the internal politics in that company it's good that it's handled by an independent firm...When the lead guy from the firm met staff he gave them a list of companies that they have turned around and also a list of one's that they have failed to help out...his take is that KQ is the most challenging Co he has ever been given to help turnaround....finally from supplies department alone the measures will save KQ around 50m USD now factor in the other departments and see if well implemented where the airline would be in a few years....

@maka @obiero - Sigh, if only KQ's management acted like owners back in the day. Anyway, guys... let me check on KK where the Biwott family has their representatives on the board. I would prefer the CEO and CFO had shares in KK but they do not except through an ESOP. I prefer direct ownership.

@Obiero I agree with you if best structures are in function and observed ardently growth of a firm is automatic.

seconded.. was at the AGM personally and I listened keenly, have also seen mckinsey at work in kcb, equity, coop.. they are thorough with a global CV to protect. now, also corruption is being fought so the agents who used to infiltrate the system with 'ghost travellers' shall be fought.. procurement shall be scrutinized.. kuiba itakuwa ngumu sana based on the fact that Uhuru isnt known to be corrupt and knowing that he hand picked ngunze family members to run some of his most priced entities i.e CBA Jeremy Ngunze, KQ Mbuvi Ngunze. All shall end well

@Othelo.. Several strategies have been floated including most urgently conversion of the short tenor loans to longer periods. Also sale of obsolete and underutilised assets. These are major cash points expected to address @vvs negative equity

Sale of assets does not address negative equity and closest it means that the company is being prepared for liquidation and therefore creditors should press for liquidation to protect pecking order and charged assets from being canibalised by the management. on to your marks...... Run.

Sale of assets can generate cash that can be used to reduce liabilities. Unless the assets are worth more than the Book Value [not necessarily the case as seen with the 777s] the hole [aka Negative Equity] remains unfilled.

I'll use KK as an example. It lost 6bn in 2012 which almost wiped out the equity as stated BUT the (real estate) assets were at HISTORICAL value & the sale of some of these helped shore up the 'Equity' [for accounting purposes].

If I had my way, I would sell off many of the KK stations [or do Sale-Leasebacks] to generate cash to pay down debt to zero.

Compare this to KQ. The Embakasi land will be sold but I think it has been revalued to the current realizable value. The planes are probably worth less than their book values. The 777s were written down further in 2015-16 when KQ realized they could get the Book Value for them.

@Obiero - I am past making fun of your choices. It was just in jest. I have been burnt by crooks like Matu, Naikuni and Mbugua. The decision to exit KQ at a loss was hard but necessary. Once I made the decision, I just did it. I called my broker and said... start selling.

TRUST - If you do not TRUST the management and board then forget it. I do not trust KQ's management.

Ownership - Not all firms with owner-managers will do well but it has been shown in Kenya that most (not all) of those controlled (or as directors) by owner-managers do well. Even Collymore has a significant number of shares in Safaricom. They are a large enough part of his portfolio to matter.

Some criticize James Mworia but he has a significant stake in Centum. And we know about James Mwangi.

Some are conmen eg Merali but he has always been a conman. Michael Matu is one too but I found out too late. Other conmen include Hector Diniz & the HAFR guys.

Back to KQ. The current set of managers can do little to save the firm in its current state. That's the truth.

That is true.. So, tupigie business daily wafute hio taarifa??

I would like to thank Presidents Sirleaf & Kiir for standing with KQ. Deeply honored and gives hope.

It must be made a right to 'fly to safety' within Africa and a choice West or East.

Our partnerships with international partners should complement Africa's aspirations of peace and prosperity.

Fellow Wazuans. I have company to list. Adios. Inshallah!