The Cabinet has approved USD350 million (approximately KSh45 billion) in shareholder financing to help Kenya Airways meet urgent financial obligations, including aircraft maintenance and returning grounded planes to service.
The funds will be released in instalments under the oversight of the National Treasury, with a repayment period of up to 10 years. The financing may also be converted into equity, subject to the required approvals.
In a separate measure, the Cabinet endorsed a proposal to convert KSh122 billion in existing government loans, together with accrued interest, into an equity-qualifying tradable instrument.
The move is intended to strengthen the national carrier’s balance sheet and improve its ability to raise additional capital to support its operations and long-term recovery.
The measures form part of Kenya Airways’ broader turnaround plan, aimed at addressing its financial challenges and supporting the airline’s future sustainability.
Kenya Airways contributes more than USD1.3 billion annually to Kenya’s gross domestic product through its role in tourism, trade and regional connectivity.
However, the implementation of the financing arrangements remains subject to the necessary corporate, shareholder and regulatory approvals.
