Cabinet Approves Sh45.44 Billion Financing for Kenya Airways Turnaround
The Cabinet has approved Sh45.44 billion ($350 million) in shareholder financing for Kenya Airways to help the national carrier meet urgent financial obligations, maintain aircraft and return grounded planes to service. In a dispatch following a Cabinet meeting chaired by President William Ruto at State House on Friday, the government said the funds would be [...] The post Cabinet Approves…
The Cabinet has approved a Sh45.44 billion ($350 million) financing package for Kenya Airways to aid the national carrier in meeting emergency financial commitments, sustaining aircraft, and reinstating grounded planes into operation. President William Ruto led the Cabinet meeting at State House on Friday, where the decision was made.
The government announced that the funds would be allocated in installments under the monitoring of the National Treasury. The loan term could extend up to ten years, with the option to transform a portion of it into equity, pending further approvals. Additionally, the Cabinet backed a proposal to convert Sh122 billion in ongoing government loans, including accumulated interest, into a tradable equity security.
This conversion aims to bolster Kenya Airways' financial standing and facilitate future capital accumulation. These steps are integral to Kenya Airways' long-term revitalization strategy and are designed to preserve the airline, which contributes over $1.3 billion annually to Kenya's GDP via tourism, trade, and regional connectivity.
The government retains a 48.90% stake in Kenya Airways, owning around 2.85 billion shares, making it the airline's principal shareholder.
Written by urgent.news from KahawaTungu's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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