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Indigenization and the Long-Term Formation of Human Capital in Africa: The Airline Industry in East Africa Since 1946

Published online by Cambridge University Press:  10 June 2022

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Abstract

This paper examines the Africanization of human resources in East Africa during the latter part of the twentieth century. Focusing on the case of the East African Airways Corporation (EAAC) and later Kenya Airways, we analyze the long-term development of staffing policy in these companies and the impact of the changing political and managerial environment (colonial rule, joint ownership by three independent states, Kenyan state-owned enterprise, private enterprise with foreign ownership). This research shows that post-independence Africanization was hampered by a lack of specific local expertise. The EAAC solved this difficulty by cooperating with foreign organizations that provided adequate training for African pilots, engineers, and managers. However, indigenization was also used in a less meritocratic way and promoted clientelism.

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Creative Commons
Creative Common License - CCCreative Common License - BYCreative Common License - NCCreative Common License - ND
This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives licence (https://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is unaltered and is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use or in order to create a derivative work.
Copyright
© The Author(s), 2022. Published by Cambridge University Press on behalf of the Business History Conference. All rights reserved.
Figure 0

Figure 1. EAAC’s actual revenues and profits between 1957 and 1972.Source: Kenya National Archives EAAC reports for various years (compiled by the authors).

Figure 1

Table 1. Breakdown of origins of EAAC staff in 1960 in numbers

Figure 2

Table 2. Airline Productivity per employee-Selected IATA Carriers for the year 1969

Figure 3

Table 3. Breakdown of EAAC staff by origins in 1965

Figure 4

Figure 2. KQ’s net income and sales turnover in US$ (thousands) for 1990–2017.Source: Kenya National Archives, Kenya Airways annual reports for various years (compiled by the authors).