Kenya Airways Explains Cabinet-Approved Ksh 45 Billion Loan and Debt Plan
Originally published by Hivileo — Read the original article →
Kenya Airways has outlined plans to restructure Ksh 122 billion in government loans alongside a fresh Ksh 45.15 billion loan, in a financial rescue effort aimed at addressing its negative equity position and attracting new investors.
In a statement dated Friday, October 9, the national carrier said government approval covers both measures, which target different financial challenges, meeting urgent operational expenses and changing how existing state debt is treated on its balance sheet.
While fresh financing will support aircraft maintenance and efforts to return grounded planes to service, converting existing loans into an equity-qualifying tradable instrument is intended to improve Kenya Airways’ financial standing and create room for future capital raising.
