Kenya Airways will receive a further Sh36.6 billion bailout from the Treasury in the fiscal year beginning in July, as part of efforts to support the national carrier as it recovers from the Covid-19 travel slump.
The allocation comes weeks after MPs approved a Sh20 billion bailout for the airline in budget documents tabled in Parliament.
This will bring the government’s support for the airline to Sh56.6 billion in less than a year, making it Kenya’s largest corporate bailout.
The new Treasury allocation is described as a “strategic government investment,” and it comes after the State abandoned plans to nationalize the airline.
The allocation came during a period in which the national carrier’s losses were cut in half to Sh16.03 billion, thanks to increased revenue.