The National Treasury has turned down Kenya Airway’s plea for a Ksh7 billion bailout due to the tough business conditions brought about by restrictions on international passenger flights because of the Coronavirus pandemic – By Prudence Wanza
Treasury Cabinet Secretary, Ukur Yatani said nationalizing Kenya Airways is the only way solve its financial woes which go beyond the hard-economic times during covid-19 crisis.
The plan to nationalize Kenya Airways was approved by parliament on July last year with Yatani citing that a plan is underway to save the airline and the treasury can not commit anything pertaining the Ksh7billion.
“Kenya Airways need to remain afloat but it is also important to look at structural challenges because what is happening now is more than the business environment.” The CS said.
Yatani also revealed that a restructuring plan by the Treasury and Transport ministry is ready and would be unveiled in coming weeks.
The National carrier is currently depending on cargo flights which it says is not enough for its operations including payment of staff salaries.
The restriction of movement into and out of four counties including Nairobi, Mombasa, Kwale and Kilifi to combat the spread of the coronavirus ha largely affected the Kenyan airline.