Kenya Airways receives $350 million government loan approval

The Kenyan Cabinet has approved a $350 million (approximately Sh45.15 billion) government loan to support Kenya Airways in addressing urgent operational needs and a massive debt overhaul. The financing is intended to help the national carrier restore aircraft capacity by funding critical maintenance and returning grounded planes to service. The funds will be released in installments under the oversight of the National Treasury, with a repayment period of up to 10 years. Additionally, the Cabinet endorsed a proposal to restructure approximately $941 million (Sh122 billion) in existing government loans by converting them into equity-qualifying tradable instruments.

Kenya Airways has cautioned investors and shareholders to exercise caution when dealing in its securities until the final terms of these measures are formally communicated. While the interventions aim to strengthen the airline's balance sheet and support its long-term turnaround plan, implementation remains subject to regulatory clearances, shareholder approvals, and definitive transaction documents. The airline has faced significant challenges, including a first-half pre-tax loss of $123 million in 2026 and rising fuel costs driven by Middle East conflicts.