Co-op Bank has partnered with Kenya Airways to finance its pilots training program. Under the “Ab Initio” program, trainee pilots will receive loans from Co-op bank to facilitate the training.
Co-op Bank, the sole financier of the training program, will provide KES324 million as a revolving fund from which, each pilot is expected to draw 5.4 million as a loan to finance the pilot training course. The loan is to be repaid over a period of 96 months after a grace period of 27 months, this being the training period. On completion of the training, Kenya Airways guarantees permanent employment to every pilot that successfully completes the training program.
To secure the facility Kenya Airways has signed a specific guarantee with the Bank committing to act as the guarantor. To mitigate the inherent risks the company has undertaken an insurance policy with CIC against any default in loan repayment in case of death; critical illness; permanent disability and exam failure of the Ab initio pilot.