Nairobi, Kenya — The Kenyan Treasury is poised to take on the debt of Kenya Airways, a move aimed at bolstering investor confidence in the beleaguered national carrier. The government has cancelled a $3.6 billion loan program and is now seeking a fresh loan to support the airline. State investors from both domestic and international backgrounds have been approached with the intention of acquiring the airline.
The delays in obtaining aircraft and spare parts from Boeing have further underscored the need for financial assistance. President William Ruto is scheduled to visit Doha next month in a bid to secure new investors, a visit that coincides with a warming of relations between Kenya and Qatar amidst cooling ties with Abu Dhabi.
In the interim, Kenya Airways will maintain operations using a hybrid fleet. The government is also exploring the use of securitization for future infrastructure financing, which could provide additional funding avenues. The urgency to secure new investment is evident as the airline navigates operational hurdles and seeks to stabilize its financial position.
Source: Africa Intelligence
