Kenya Airways (KQ) will get an additional State bailout of KES 34.9 billion to help the airline repay debts including to aircraft lessors.
In a letter to International Monetary Fund (IMF) managing director Kristalina Georgieva-Kinova, Treasury Cabinet secretary Njuguna Ndung’u said the financial support is contained in the supplementary budget that will be tabled at the National Assembly before the end of January 2023.
Kenya Airways is one of the State-owned enterprises that will receive extraordinary support from the government amounting to KES 37.3 billion in the upcoming mini-budget.
This includes all debts, loans, letters of credit facilities, and convertible equity amounts. Of this amount, U$688 million is guaranteed by the Government of Kenya.
These creditors include aircraft lessors, operation, and maintenance costs, landing and rental fees, fuel costs, rent, navigation, handling charges, and taxes.