Government bails out KQ with Ksh. 5 billion

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The National Government has once again come to the rescue of Kenya Airways by financing them with Ksh.5 billion to shore up its operation.

In a letter to Nairobi Securities Exchange, KQ chairman Michael Joseph said the funds are crucial in revamping their engineering operations and general administration.

“The National Treasury made a loan on commercial terms to KQ,” reads part of the letter addressed to NSE CEO Geoffrey Odundo.

In the letter to NSE, Joseph also alluded to the impending nationalization urging for caution in trading of its shares at the bourse.

“The possible restructuring may once confirmed in greater detail have a material effect on the price of KW securities,” he added.