NAIROBI, Kenya- Kenya Airways is set to receive USD350 million in shareholder financing after Cabinet approved a package to help the national carrier meet urgent financial obligations, including aircraft maintenance and returning grounded planes to service.
The funding will be released in tranches under National Treasury oversight.
The proposed repayment period is up to 10 years, and the financing could be converted into equity, subject to the required approvals.
Cabinet also endorsed the proposed conversion of Sh122 billion in existing government loans, plus accrued interest, into an equity-qualifying tradable instrument.
The measure is intended to strengthen Kenya Airways’ balance sheet and support future capital raising.
The decisions form part of the airline’s long-term turnaround plan. Their implementation remains subject to corporate, shareholder and regulatory approvals.
The government said Kenya Airways contributes more than USD1.3 billion a year to the country’s economy through tourism, trade and regional connectivity.
The Cabinet statement did not provide further details on the conditions attached to the financing or the airline’s repayment plan.
