The Kenya government is to take control of Kenya Airways. This follows a deal that will see the government, in conjunction with domestic lenders, convert airline debt into equity, reports Inside Travel.
More than $400 million (R5,76bn) of the airline’s debt will be converted in the deal, increasing the government’s stake in Kenya Airways from 29,8% to 48,9%. Air France KLM has a 26,7% stake in the airline.
In a statement issued to the Nairobi Stock Exchange, the national carrier said the government had given the airline more than $200 million (R2,88bn) of Kenyan shilling and dollar-denominated loans.
Eleven local banks have also benefited from the deal, acquiring a 38,1% stake, which will be held in a special purpose vehicle called KQ Lenders Co.
