Kenya Airways The government’s bailout fund for the airline is contained in a supplementary budget that was recently sent to the country’s lawmakers.
Meanwhile, in order to get the bailout fund, the airline would have to ensure that "certain restructuring milestones" are actualised. The company’s Chairman, Michael Joseph, confirmed this condition to Bloomberg.
Kenya Airways, which is one of Sub-Saharan Africa’s most notable airlines, has a debt stock of nearly a billion dollars. The company recently commenced consultations with the likes of Seabury Consulting and others on how to restructure the loans.
Recall that the move by Kenya Airways to restructure the debts followed the government’s decision to scrap an earlier planned nationalisation of the airline.
Also note that the Kenyan Government owns a 48.9% stake in the airline. And this is not the first time that Kenya is making provisions to bail out the cash-strapped airline. Last year, the Kenyan National Treasury had to convert a $217.4 million government debt owed by Kenya Airways into equity.
Kenya Airways’ financial troubles were exacerbated by the COVID-19 pandemic and the resultant effects of the various lockdowns and travel restrictions.
