Kenya Airways government financial intervention

The Kenyan Cabinet has approved significant financial interventions to support the recovery and debt restructuring of the national carrier, Kenya Airways. The government has authorized approximately $350 million (Ksh 45.4 billion) in new financing to address urgent operational costs, specifically for aircraft maintenance and returning grounded planes to service. These funds are to be disbursed in installments under National Treasury supervision with a repayment period of up to 10 years.

To further stabilize the airline’s balance sheet, the Cabinet endorsed a proposal to restructure roughly $941 million (Ksh 122 billion) in existing government loans and accrued interest. This process involves converting the debt into equity-qualifying tradable instruments to improve the carrier’s ability to attract capital.

While these measures aim to support a long-term turnaround, Kenya Airways has advised investors to exercise caution regarding its securities until final terms are formally communicated. The airline’s financial difficulties include a first-half pre-tax loss of $123 million in 2026 and rising fuel costs.