Kenya Airways Secures $350M State Bailout

Kenya’s cabinet approved $350 million in shareholder financing for Kenya Airways to help the loss-making carrier meet its urgent financial obligations, President William Ruto’s office announced on Friday.

As the airline’s largest shareholder, the Kenyan government provided the funds as part of broader efforts to support the flag carrier while it actively seeks strategic investors to inject fresh capital.

Under the cabinet-endorsed restructuring plan, the finance ministry will release the funds in batches with a repayment term of up to 10 years and an option for equity conversion, subject to regulatory approvals.

Kenya Airways secures 0 million state bailout (News Central TV) — Kenya Airways secures $350 million state bailout. Credit: Reuters

Additionally, the cabinet supported converting 122 billion Kenyan shillings ($941 million) in existing government debt into an equity-qualifying tradable instrument to help clean up the airline’s balance sheet.

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Abisoye Adeyiga

Abisoye Adedoyin Adeyiga holds a PhD in Languages and Media Studies and a Master’s in Education (English Language). Trained in digital marketing and investigative journalism, she is passionate about new media’s transformative power. She enjoys reading, traveling, and meaningful conversations.