Kenya’s cabinet has approved $350 million in shareholder financing for Kenya Airways to help the loss making national carrier meet urgent financial obligations, President William Ruto’s office said on Friday.
The Kenyan government, the airline’s largest shareholder, is supporting efforts to stabilise its finances as the carrier seeks strategic investors and fresh capital.
As part of its restructuring plan, Kenya Airways is considering measures to improve its balance sheet, including converting government and bank debt into equity.
Ruto’s office said the cabinet had also endorsed a proposal to convert 122 billion Kenyan shillings, worth about $941 million, in government loans into a tradable instrument that could qualify as equity.
The newly approved financing will be released in instalments under the supervision of the finance ministry. It will have a repayment period of up to 10 years and may be converted into equity, subject to the required approvals.
The move comes as Kenya Airways continues efforts to address mounting financial pressures and secure the capital needed to support its operations and longer term recovery.
Leave a comment