The Kenyan government has loaned loss-making Kenya Airways the equivalent of R536 million, and the African Export-Import Bank (Afreximbank) has approved a R2.7 billion bridging loan.
The national carrier, part-owned by Air France-KLM, has not made a profit in three years – partly attributed to the country's tourism industry suffering the fallout from a number of Islamist militant attacks.
The airline also has rising debts from new plane purchases, and the Kenyan government has estimated the carrier will need a bailout of some R6.7bn to R8.04bn. The exact amount will depend on a turnaround plan being prepared by McKinsey and Seabury consultants.
Sources: News24kenya and Reuters
Loans to loss-making Kenya Airways
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