The National Treasury of Kenya has cut support for Kenya Airways by KES10bn (R1,4bn), shaving capital for the carrier down to KES20bn (R2,9bn) from KES30bn (R4,3bn).
Earlier this year, the Treasury mentioned in its draft Budget Policy Statement that it was setting a deadline of December this year for an end to persistent bailouts to the carrier, according to Business Daily.
“To support the aviation industry, the government will develop a turnaround strategy for Kenya Airways,” said the Treasury, adding that a critical part of this strategy would be a financing plan that did not depend on operational support from the exchequer beyond December 2023.
In November 2022, Kenya Airways was KES104,4bn (R15,1bn) in debt.
In a recent interview with Bloomberg, Kenyan President William Ruto confirmed that the nation was actively exploring options and partnerships to make the airline a profitable entity once more.
The government could still sell its stake in Kenya Airways altogether, and Delta Air Lines is currently earmarked as a top potential partner.
