Kenya has approved $350 million in shareholder financing for national carrier Kenya Airways to meet urgent financial obligations and return grounded aircraft to service, as the government pursues a separate restructuring of about $941 million in existing loans.
The financing is intended to ease immediate cash-flow pressures and restore aircraft availability, which is critical to the airline’s capacity to operate flights and generate revenue.
A separate proposal would restructure approximately $941 million in government loans, potentially strengthening the airline’s balance sheet and supporting efforts to raise additional capital.
The disbursement of the new financing and any conversion of debt into equity remain subject to the required approvals. The final terms of the transactions, including their implications for the government’s ownership stake, have yet to be established.
Kenya Airways has faced persistent financial and operational challenges, including high operating costs and aircraft maintenance constraints. The latest measures reflect the government’s efforts to stabilise the carrier while seeking a more sustainable financial footing.
The success of the intervention will depend on whether the funding restores operational capacity, improves cash generation and helps the airline reduce its reliance on further government support.
