Kenya’s cabinet has approved $350 million in shareholder financing for Kenya Airways to meet urgent financial obligations, President William Ruto’s office said this Friday.
The government is the largest shareholder in the loss-making airline, which is in the process of seeking strategic investors as it looks for fresh capital
Kenya Airways says that part of its restructuring plan includes cleaning up its balance sheet, including the possible conversion into equity of principal debt owed to the Kenyan government and a consortium of local banks
The cabinet also endorsed a proposed conversion of Kenya Airways’ 122 billion Kenyan Shillings ($941 million) in government loans into an equity-qualifying tradable instrument, Ruto’s office said in a statement
The funds will be released in batches under the Finance Ministry’s oversight with a repayment period of up to 10 years and the possibility of conversion into equity, subject to the necessary approvals.
–Reuters–
