Cash-strapped Kenya Airways will once more receive financial support from taxpayers as the State is expected to cover its KSh103 billion debt.
The International Monetary Fund (IMF) reported that the decision was made to assist the airline in navigating the financial uncertainty that has long characterized its business operations.
As part of the government’s strategic investments in public companies, KQ was given KSh36.6 billion to aid in its reorganization in the budget for the current fiscal year ending in June of the following year.
With KSh26.6 billion allocated to the ailing airline in the financial year ending June 2022, this will raise the total capital the State has invested in it to KSh63.2 billion.
According to The Standard, the State loaned KQ KSh35 billion between 2016 and 2020, raising the airline’s total loans to KSh98.2 billion.
Additionally, if the KSh85.2 billion State guarantees for loans obtained by the airline by the end of June 2020 are included as well, as stated in its annual report, taxpayers could be on the hook for KSh183.4 billion should the company go out of business.
