Treasury snubs KQ plea for Sh7bn virus bailout
Tuesday, May 26, 2020 0:01
By JOHN MUTUA
Kenya Airways chief executive Allan Kilavuka.
PHOTO | DIANA NGILA
The Treasury has refused to offer a commitment to Kenya Airways’s #ticker:KQ 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 on nationalisation of Kenya Airways, arguing the carrier’s financial troubles go beyond the corona-related woes.
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 chief executive Allan Kilavuka said revenue from the carrier’s cargo business is not adequate for the airline to meet its obligations.
