Kenya’s National Treasury paid US$47 million (R901 million) towards Kenya Airways’ debt during Q4-2023, settling over 50% of the national carrier’s guaranteed debt.
As part of a strategy to restructure the airline, the Kenyan government took over part of its debt owed to the US Export-Import Bank following a loan agreement in 2017, reports simpleflying.com. In Q3-2023, the Kenya government had settled about $18 million (R345 million) of the airline’s debt.
According to businessdailyafrica.com, with the Q4-2023 payment, Treasury has paid approximately $370 million (R7,09 billion) of the $482 million (R9,24 billion) loaned over the previous year.
Kenya Airways has $2,1 billion (R40 billion) in total debt owed to the national government.
A turnaround strategy to recover the airline, developed in 2022, is still under review, with plans to bring in a consultant to assist with finding an equity partner delayed from December 2023 to June this year.
