NAIROBI, Kenya, Oct 10 – Cabinet has approved 350 million US dollars in shareholder financing for Kenya Airways to meet urgent financial obligations, maintain aircraft and return grounded planes to service.
The funds will be released in phases under National Treasury oversight, with a repayment period of up to 10 years.
The financing may also be converted into equity, subject to the required approvals.
Cabinet has also endorsed a proposal to convert Sh122 billion in existing government loans, plus accrued interest, into a tradable instrument that qualifies as equity to strengthen the airline’s balance sheet and support future fundraising.
The measures form part of Kenya Airways’ turnaround plan and are intended to protect an airline that contributes more than 1.3 billion US dollars annually to Kenya’s economy.
