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The government has announced plans to inject cash into the troubled Kenya Airways (KQ), a move that is aimed at ridding the airline of its loss-making fete.
Speaking during the release of the 2019 tourism sector performance results, acting Treasury CS Ukur Yattani said they are in search of resources to help boost the airline.
Kenya’s troubled airline reported a net loss of KSh8.5 billion in the first half of 2019. They attributed this to a 15% increase in operating expenses, rising upto KSh61 billion.
According to the airline chairman, Michael Joseph, they need up to KSh45 billion to get operations back to profitability, even as plans are underway to nationalize the carrier.
The Star reports that the airline owes the following lenders:
- CBA Group: KSh3.1 billion
- NIC Bank: KSh2.1 billion
- Equity Bank: KSh5.2 billion
- Cooperative Bank: KSh3.3 billion
- KCB: KSh2.1 billion
- Diamond Trust Bank: KSh2.1 billion