{"id":22485,"date":"2021-02-12T20:52:45","date_gmt":"2021-02-12T20:52:45","guid":{"rendered":"https:\/\/www.africa-press.net\/kenya\/?p=22485"},"modified":"2021-02-12T20:52:45","modified_gmt":"2021-02-12T20:52:45","slug":"treasury-gives-ailing-kq-sh26b-in-takeover-plans","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-gives-ailing-kq-sh26b-in-takeover-plans","title":{"rendered":"Treasury gives ailing KQ Sh26b in takeover plans"},"content":{"rendered":"

AfricaPress-Kenya:<\/strong> The government will inject Sh26.5 billion into\u00a0cash-strapped Kenya Airways\u00a0(KQ) as part of its plan to nationalise the airline.<\/p>\n

In a mini budget released this week, the National Treasury said the cash will be in the form of a shareholder convertible loan.<\/p>\n

In total, Treasury has set aside Sh27 billion for strategic investments in public enterprises.<\/p>\n

The remaining Sh500 million will go to the Agricultural Finance Corporation.<\/p>\n

KQ\u2019s recapitalisation will be a big win for banks which own about 38 per cent of the airline.<\/p>\n

The shareholding was a result of their debt being converted into capital in 2017 as the carrier struggled to pay creditors.<\/p>\n

The recapitalisation is one of Treasury\u2019s key changes, which will also see Kenya Revenue Authority receive additional grants.<\/p>\n

The government\u2019s 48 per cent stake in KQ is shy of the 50 per cent that would make it a State corporation.<\/p>\n

Treasury Cabinet Secretary Ukur Yatani, in the 2021 Draft Budget Policy Statement, said the government is developing strategies to improve operational efficiency at KQ to ensure it remains afloat.<\/p>\n

\u201cThis will enhance regional integration and promote tourism and international trade which are key in supporting the manufacturing pillar of the Big Four Agenda,\u201d said Yatani.<\/p>\n

The State has also helped the national carrier to restructure a Sh20 billion loan from Afrexim Bank.<\/p>\n

The loan was then refinanced by PTA Bank in June 2018, to be repaid in 10 equal semi-annual installments.<\/p>\n

Conversion of KQ into a State corporation is part of the agenda this week.<\/p>\n

The airline has been some turbulence, which worsened with the outbreak of the Covid-19 pandemic.<\/p>\n

Loan guarantees<\/strong><\/p>\n

As at June 30, 2020 total outstanding government guaranteed debt was Sh160,453 million up from Sh154,802 million at the same time in 2019.<\/p>\n

The increase was mainly attributed to drawdown of the guaranteed loans to Kenya Ports Authority and\u00a0Kenya Airways.<\/p>\n

The supplementary budget also set aside funds for the civil servants group personal accident insurance.<\/p>\n

There will also be additional funding for the subscription to Shelter Afrique, a low-cost real estate lender, and operationalisation of the Kenya Mortgage Refinance Company.<\/p>\n","protected":false},"excerpt":{"rendered":"

AfricaPress-Kenya: The government will inject Sh26.5 billion into\u00a0cash-strapped Kenya Airways\u00a0(KQ) as part of its plan to nationalise the airline. In a mini budget released this week, the National Treasury said the cash will be in the form of a shareholder convertible loan. In total, Treasury has set aside Sh27 billion for strategic investments in public […]<\/p>\n","protected":false},"author":84,"featured_media":22477,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[876,3688,689],"class_list":["post-22485","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-kenya-airways","tag-loans","tag-treasury"],"yoast_head":"\nTreasury gives ailing KQ Sh26b in takeover plans - kenya<\/title>\n<meta name=\"description\" content=\"The government will inject Sh26.5 billion into\u00a0cash-strapped Kenya Airways\u00a0(KQ) as part of its plan to nationalise the airline.In a\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-gives-ailing-kq-sh26b-in-takeover-plans\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Treasury gives ailing KQ Sh26b in takeover plans\" \/>\n<meta property=\"og:description\" content=\"The government will inject Sh26.5 billion into\u00a0cash-strapped Kenya Airways\u00a0(KQ) as part of its plan to nationalise the airline.In a\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-gives-ailing-kq-sh26b-in-takeover-plans\" \/>\n<meta property=\"og:site_name\" content=\"kenya\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2021-02-12T20:52:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2021\/02\/treasury_gives_ailin602638dccb2af.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"713\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-gives-ailing-kq-sh26b-in-takeover-plans#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-gives-ailing-kq-sh26b-in-takeover-plans\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Treasury gives ailing KQ Sh26b in takeover plans\",\"datePublished\":\"2021-02-12T20:52:45+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-gives-ailing-kq-sh26b-in-takeover-plans\"},\"wordCount\":353,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-gives-ailing-kq-sh26b-in-takeover-plans#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2021\/02\/treasury_gives_ailin602638dccb2af.jpg\",\"keywords\":[\"Kenya Airways\",\"Loans\",\"Treasury\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-gives-ailing-kq-sh26b-in-takeover-plans#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-gives-ailing-kq-sh26b-in-takeover-plans\",\"url\":\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-gives-ailing-kq-sh26b-in-takeover-plans\",\"name\":\"Treasury gives ailing KQ Sh26b in takeover plans - 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