Kenya Airways is set to receive US$350 million (R5,8 billion) in government financing to help cover pressing operating costs and bring grounded aircraft back into service, according to ch-aviation.
Cabinet approved the shareholder funding on October 9 as part of the carrier’s turnaround programme. National Treasury will oversee payments in instalments, with repayment spread over up to 10 years. The funding could also be converted into equity, subject to approval.
The airline is working towards restoring its grounded fleet by early 2027. According to ch-aviation, 11 of its 34 aircraft are currently out of service, including two Boeing 787-8s.
Cabinet also backed a restructuring of US$940,6 million (R15,58 billion) in government loans, plus interest, to improve the airline’s financial position ahead of further fundraising. This proposal still requires corporate, shareholder and regulatory approvals.
Kenya Airways is seeking at least US$1,5 billion (R24,84 billion) from a strategic investor, with the fundraising process potentially concluding in the first quarter of 2027.
