The Treasury has refused to offer a commitment to Kenya Airways's request for a Sh7 billion emergency bailout after its aircraft were grounded due to the restrictions on international passenger flights sparked by the coronavirus pandemic.
Treasury Cabinet Secretary Ukur Yatani said the State was keen on a long-term solution anchored in nationalisation of Kenya Airways, arguing the carrier's financial troubles go beyond the corona-related woes.
The freeze on all cross-border passenger flights on March 22 and restriction of movement into and out of four counties including Nairobi, Mombasa, Kwale and Kilifi to curb the spread of the virus has hit Kenya Airways hard.
Mr Yatani reckons that the Treasury is keen to pursue a turnaround under the plan to nationalise Kenya Airways, which was approved by lawmakers in July.
"Kenya Airways need to remain afloat but it is also important to look at structural challenges because what is happening now is more than the business environment."
