Kenya Airways' restructuring efforts have been dealt a blow after a court ordered it to reinstate 447 workers who lost the jobs as part of its rationalisation programme.
The SkyTeam carrier says it is in the process of reinstating the unionised workers to comply with yesterday's ruling from a Nairobi industrial court.
"The employees who reported to work this morning as directed by the court are now in the process of being issued with reinstatement letters and will be sent on leave awaiting redeployment," the airline says in a brief statement.
The airline cut around 600 roles - around a fifth of whom accepted a voluntary redundancy package - as part of restructuring efforts aimed at reducing its labour costs by KSh1.2 billion ($14 million) annually. The drive on costs comes as the airline has just slipped to a first-half loss of KSh4.8 billion.
Kenya Airways adds that it is studying the court ruling and its implications and will advise on its next steps in due course.