Kenya Airways Boeing 787-8 Kenya Airways (KQ, Nairobi Jomo Kenyatta ) has been granted waivers and deferrals on unpaid interest on KES25 billion shillings (USD217 million) worth of loans from the Kenyan government, advanced in the past two years to enable the airline to sustain operations during and after the COVID-19 pandemic.
According to the airline’s recently-released annual report and financial statements for the year ending December 31, 2021, the Kenya Airways Group has not made any interest payments on the government loans as set out in the loan agreements, which required payment of interest by June 20 every year. “The group sought and was granted waivers and deferrals on the unpaid interest on the shareholder loan,” the financials read.
The amount of KES25 billion includes a first tranche of KES11.1 billion (USD96.2 million) in 2020 and a second tranche of KES14.4 billion (USD124.8 million) in 2021. “The loans are repayable after five years and attract interest at the rate of 3% per annum, the accrued interest being payable by June 20 each year,” according to the financial report.