- The government of Kenya has cleared more than half of Kenya Airways (KQ) debt owed to American Exim Bank
- In the last quarter of 2023, the National Treasury paid KSh 6.9 billion to the US lender, adding to the total payout of KSh 53.7 billion
- KQ debt secured from the bank in 2017 to restructure the operations of the national carrier amounted to KSh 69.9 billion
TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.
Kenya Airways could soon move out of the red zone as the government clears more than of its debt owed to the US Exim Bank.
Source: Twitter
The National Treasury paid KSh 6.9 billion to the American lender in the last quarter of 2023, under a debt novation agreement.
How much does KQ owe US Exim Bank?
The government secured KSh 69.9 billion from the lender in 2017 to restructure the operations of the airline.
According to NTV, the total payment to the international lender from the Treasury amounted to KSh 53.7 billion.
KQ made a profit in the year ending June 2023, however, the weakening shilling pushed it further into debt and losses.
Kenya Airways debt
Data from the airline showed KQ’s debt shot to $1.347 billion (KSh 187.74) billion as of May 30, 2023.
The debt included the $439.8 million (KSh 61.4 billion) Tsavo facility connected to the carrier’s purchase of six Boeing 787-8 aircraft, one Boeing 777-300 ER aircraft, and one Genx engine in 2012.
The national carrier also owed suppliers KSh 22.9 billion and syndicates KSh 13.7 billion used to acquire 10 Embraer e-jets.
What to know about KQ debt to US Exim bank
Source: TUKO.co.ke
