The Treasury has agreed to inject cash into Kenya Power and Kenya Airways in the financial year starting July 2022, citing the role of the two struggling firms in supporting economic recovery from Covid-19 knocks.
No bailout was allocated to the two firms in the current financial year, raising concerns their worsening cash flow positions could hurt operations and slow down recovery in economic activity.
The national carrier has made clear its plea for additional cash from anchor shareholder, the government, to help it out of its precarious financial position.
Equally debt-laden Kenya Power has also sunk into a near dire financial position with operating costs rising faster than revenue, worsened by elevated financing costs and system losses, writes Constant Munda for The Nation. Sila Kiplagat/Nation Media Group