The CEO of Kenya Airways reports that the government of Kenya is almost ready to adopt a restructuring plan for the airline that would replace one that was offered by the previous administration and backed by the (IMF).
One of the three largest airlines in Africa experienced insolvency in 2018 after incurring massive debt during an expansion drive.
In 2021, a plan was announced by the previous administration of President Uhuru Kenyatta, under which the government committed to lend money and eventually assume $800 million of the airline’s debt.
William Ruto, Kenya’s current head state, who assumed office in September, has promised to reduce borrowing and questioned the government’s ownership of Kenya Airlines.
Njuguna Ndung’u, the finance minister, also responded to written inquiries by saying the government planned to turn around Kenya Airlines so it could find a strategic investor but he did not go into specifics about the new strategy.
The previous plan was approved by the International Monetary Fund (IMF) as part of a $2.34 billion funding package it established in April 2021 with Kenya’s government, which owns a 48.9 percent share in the airline.