Kenyan Taxpayers Bear Burden as Government Assumes Kenya Airways’ $641M Debt

The Kenyan government has assumed the responsibility of servicing a substantial loan originally taken by the national carrier, Kenya Airways (KQ).

The loan, amounting to $641.49 million (Sh83.4 billion), was provided by US lenders Citi Bank and JP Morgan in 2017 and was intended to finance the acquisition of seven aircraft and an engine. However, Kenya Airways encountered financial challenges, exacerbated by the disruptions caused by the Covid-19 pandemic which hindered its ability to fully…