The National Treasury of Kenya has cut support for Kenya Airways by KES10bn (€74m), shaving capital for the carrier down to KES20bn (€147m) from KES30bn (€221m).
Earlier this year, the Treasury mentioned in its draft Budget Policy Statement that it was setting a deadline of December this year for an end to persistent bailouts to the carrier, according to Business Daily.
“To support the aviation industry, the government will develop a turnaround strategy for Kenya Airways,” said the Treasury, adding that a critical part of this strategy would be a financing plan that did not depend on operational support from the exchequer beyond December 2023.
In November 2022, Kenya Airways was KES104.4bn (€768m) in debt.
In a recent interview with Bloomberg, Kenyan President William Ruto confirmed that the nation was actively exploring options and partnerships to make the airline a profitable entity once more.
The government could still sell its stake in Kenya Airways altogether, and Delta Air Lines is currently earmarked as a top potential partner.
