Kenya's Cabinet Approves US$350 Million Shareholder Financing For Kenya Airways

Kenya's Cabinet approved US$350 million in shareholder financing for Kenya Airways to cover urgent financial obligations, aircraft maintenance, and return grounded planes to service, with funds disbursed in tranches under National Treasury oversight and repayable over up to 10 years with possible equity conversion.

The Cabinet also endorsed converting KSh122 billion in existing government loans plus accrued interest into an equity-qualifying tradable instrument to strengthen the airline's balance sheet and support future capital raising. This decision was part of broader cabinet approvals including settlement of KSh23.74 billion in verified pending bills.