Kenya Airways has received a soft loan of Ksh 10 billion from the Kenyan Government through the Ministry of Treasury to enable the airline accomplish the ongoing turnaround strategy.
Part of the cash will be used to enable a successful retrenchment of about 600 employees and KQ management expects that when the whole exercise is complete and over Ksh 2 Billion will be saved annually.
READ; Kenya Airways retrenchment begins, 80 employees dismissed
The cash was mooched from China’s Afrexim Bank and the cash has already hit the Bank accounts of the airline according to Henry Rotich, CS Treasury. This amount is the second tranche of the Ksh 20 Billion debt taken by Government on behalf of the Airline.
“Some decisions we take may be unpopular, but have to be made in the wider interest of the airline and its sustainability. Fleet rationalisation is one of them. We have to build a leaner and more efficient airline.” argues the Mr Mbuvi Ngunze the Airline’s MD
Read More; NGUNZE; Decisions taken may be unpopular, but benefitial to KQ & its sustainability
Kenya Airways will soon be announcing results for the financial year ended March 31 and provide further details on the progress made in turning around the airline.
