The new restructuring plan of Kenya Airways under President William Ruto is about to receive government’s nod of approval soon. This plan will replace the initial plan that was introduced by the previous government and backed by International Monetary Fund (IMF).
As per the previous plan, Kenya’s former President, Uhuru Kenyatta's government had agreed to provide loans and eventually take over $800 million of the airline's debt.
However, with the change in leadership, the present President William Ruto has introduced a new turnaround plan for the carrier and cut government’s borrowing. Following this announcement, last month Kenya’s national treasury released the supplementary budget for FY 2022-23 which cut the airline’s funding by nearly $80 million.
Responding to Reuters, Allan Kilavika confirmed of a new restructuring plan with the government. “The government is currently at the tail end of approving this strategy," Kilavika said.
However, no details of the new restructuring plan were given by the government officials or the airline. According to sources, the new plan would include some elements of the previous one, including eliminating loss-making routes, but exact details are not revealed.
Kenya Airways will present its 2022 results to investors this Monday, April 3, 2023.
Earlier this month, the National Treasury tabled the funds in parliament that revealed about $22.9 million was paid to the US Exim Bank after it fined the airline with a default notice on loan payments.
Kenya Airways currently flies to over 50 destinations in Africa, Asia, and Europe. The Kenyan government owns a 48.9% stake in the airline, while Air France-KLM owns 7.8%. Private owners and bankers own the rest.