Kenya Airways has announced that it paid its former chief executive officer, Mbuvi Ngunze, a total of Sh. 104.8 million when he left the airline last year.
Mr Ngunze earned a total of Sh. 89.9 million in the nine months ended December 2017, comprising a salary of Sh. 6.7 million, allowances (Sh. 538,000), benefits (Sh. 737,000), the second tranche of the severance pay (Sh. 58.8 million) and the consultancy fee (Sh. 23.1 million).
He received a total of Sh. 70.6 million in the 12 months through March 2017, comprising a salary of Sh. 39.7 million, allowances (Sh. 3.2 million), benefits (Sh. 4.7 million) and the first tranche of the termination benefit (Sh. 22.8 million).
Mr Ngunze’s exit payout, which ranks among the highest in corporate Kenya, is disclosed in the airline’s latest annual report.
KQ, as the airline is popularly known, says in the report that it made a series of severance payments to Mr Ngunze starting with a Sh22.8 million compensation for loss of office in the 12 months ended March 2017.
That was then followed by a payment of Sh. 58.8 million for a similar reason in the nine months ended December 2017, when Mr Nguze also received Sh. 23.1 million for consultancy work in the months following his resignation in May 2017.
Mr Ngunze’s severance pay is expected to have included retirement benefits in line with the Nairobi Securities Exchange-listed firm’s compensation policy.
“The executive director is remunerated in accordance with the staff remuneration policy. His remuneration package comprises a base salary, pension/gratuity and other benefits designed to recognise the skills and experience of an executive director,” KQ says in the report.
Mr Ngunze’s successor, Sebastian Mikosz, earned a total of Sh46.6 million in the seven months ended December 2017, comprising a salary (Sh24.6 million), allowances (Sh18.6 million) and benefits (Sh3.4 million).