A dispute pitting Kenya Airways and pilots over a loan advanced to trainee pilots by Co-operative Bank a decade ago will now be handled by Employment and Labour Relations Court.
While referring the case to Labour Court, Justice Alfred Mabeya said the High Court did not have jurisdiction to handle the matter.
“From the foregoing, it is clear that the dispute is between Kenya Airways Pilots Association (Kalpa)– as the trade union and the bank as a third party together with KQ as the employer of members of Kalpa. The inclusion of the bank as a lender does not change the nature of the dispute,” the judge said.
He added that the dispute relates to the employment conditions of members of Kalpa who are KQ’s employees.
In the dispute, KQ floated a tender for a financier to fund its pilots’ and cabin crew training scheme in 2010.
Co-op emerged the successful bidder.
The airline and the lender then entered into an agreement whereby the bank was to advance loans to young Kenyans who wanted to become pilots to pay for their training.
The loans were guaranteed by KQ.
