Treasury To Issue Sh36bn Bailout To Kenya Airways, Key Parastatals

The government has aggreed to pump in Sh36 billion to bail out key parastatals.

This is after major government agencies sunk into losses as a result of Covid-19 economic fallout.

Companies including Kenya Airways, Kenya Power, and several universities will benefit from the support after their revenues dropped during the pandemic.

These include Kenya Airways, Kenya Airports Authority, Kenya Railways Corporation, Kenya Power and Lighting PLC, Kenya Electricity Generating Company PLC, Kenya Ports Authority, and three of the largest universities.

The agreements also reveal that Kenya has committed to audit nine key parastatals and reform them, according to IMF guidelines to ‘rationalise government involvement in the sector and ensure the viability of State Owned Enterprise (SOEs)’ continued operations’.

The government has also promised the IMF it will conduct a special audit of all the money spent on Covid-19 interventions and publish the results by end of May.