Kenyan government to inject $176m in heavily-indebted Kenya Airways
Amid the news that Kenya Airways is in the process of restructuring its debts, Business Insider Africa has gathered that the Kenyan Government plans to inject the sum of $176 million in the struggling state-owned airline.
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.
Read: Bright Simons writes: Should Ghana go to the IMF?
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.
