{"id":23936,"date":"2021-03-10T21:10:25","date_gmt":"2021-03-10T21:10:25","guid":{"rendered":"https:\/\/www.africa-press.net\/kenya\/?p=23936"},"modified":"2021-03-10T21:10:25","modified_gmt":"2021-03-10T21:10:25","slug":"treasury-to-restructure-kenya-airways-debts-again","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again","title":{"rendered":"Treasury to restructure Kenya Airways’ debts, again"},"content":{"rendered":"

AfricaPress-Kenya:<\/strong> The government is set to restructure loans advanced to the national carrier Kenya Airways, yet again.<\/p>\n

This could further increase the State\u2019s shareholding in the airline while diluting other shareholders, including the consortium of banks whose loans were converted into equity in 2017.<\/p>\n

KQ is in the process of being renationalised, with the National Aviation Management Bill now in Parliament, expected to give direction on how the process will be undertaken once it becomes law.<\/p>\n

The acting Director General of Treasury\u2019s Public Investments and Portfolio Management Directorate Stanley Kamau yesterday said the government was considering \u201crestructuring the loans that KQ has, once again\u201d.<\/p>\n

In 2017 KQ undertook a financial restructuring, with the State and a consortium of local banks \u2013 KQ Lenders Company \u2013 converting their loans into shareholding. This resulted in the Treasury increasing its stake to 48.9 per cent from 29.8 per cent.<\/p>\n

KQ Lenders Company emerged as the second-largest shareholder with a stake of 38.1 per cent.<\/p>\n

The restructuring diluted the shareholding of KLM, KQ\u2019s longtime partner, to 7.8 per cent from 26.7 per cent while retail shareholders ended with a 1.78 per cent stake from 24 per cent.<\/p>\n

Mr Kamau noted that despite KQ not being a parastatal, Treasury has been advancing it loans while writing off older debts.<\/p>\n

He said it was in the interest of the government to have KQ continue operations due to its strategic role in the economy. The 2017 restructuring also involved the State guaranteeing the airline\u2019s loans of $750 million (Sh81 billion) mostly to international lenders.<\/p>\n

Should the carrier close shop, the creditors would collect their money from Treasury.<\/p>\n

\u201cKQ is not a parastatal\u2026 we own less than 50 per cent. We however have an interest in the airline for two reasons; one is because of the role it plays in the economy including tourism, agricultural exports as well as other industries\u2026 Nairobi cannot be a hub without an airline,\u201d said Kamau when he spoke yesterday at a meeting with the press.<\/p>\n

\u201cThe second reason is that in the 2017 restructuring, we guaranteed loans to the tune of $750 million (Sh75 billion).\u201d<\/p>\n

\u201cSo when KQ is in financial distress, we have an obligation as a government to come in and support it. We have already extended some support of Sh10 billion. This may not be adequate considering the airline\u2019s financial position.\u201d<\/p>\n

While he did not specify when the Sh10 billion loan was advanced, Treasury in the supplementary budget for the current financial year said it would inject Sh26.5 billion into the airline in form of a shareholder convertible loan.<\/p>\n","protected":false},"excerpt":{"rendered":"

AfricaPress-Kenya: The government is set to restructure loans advanced to the national carrier Kenya Airways, yet again. This could further increase the State\u2019s shareholding in the airline while diluting other shareholders, including the consortium of banks whose loans were converted into equity in 2017. KQ is in the process of being renationalised, with the National […]<\/p>\n","protected":false},"author":84,"featured_media":23933,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[876],"class_list":["post-23936","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-kenya-airways"],"yoast_head":"\nTreasury to restructure Kenya Airways' debts, again - kenya<\/title>\n<meta name=\"description\" content=\"The government is set to restructure loans advanced to the national carrier Kenya Airways, yet again.This could further increase\" \/>\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-to-restructure-kenya-airways-debts-again\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Treasury to restructure Kenya Airways' debts, again\" \/>\n<meta property=\"og:description\" content=\"The government is set to restructure loans advanced to the national carrier Kenya Airways, yet again.This could further increase\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again\" \/>\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=\"2021-03-10T21:10:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2021\/03\/treasury_to_restruct60491134b9bdf.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"500\" \/>\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-to-restructure-kenya-airways-debts-again#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Treasury to restructure Kenya Airways’ debts, again\",\"datePublished\":\"2021-03-10T21:10:25+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again\"},\"wordCount\":426,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2021\/03\/treasury_to_restruct60491134b9bdf.jpg\",\"keywords\":[\"Kenya Airways\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again\",\"url\":\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again\",\"name\":\"Treasury to restructure Kenya Airways' debts, again - kenya\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2021\/03\/treasury_to_restruct60491134b9bdf.jpg\",\"datePublished\":\"2021-03-10T21:10:25+00:00\",\"author\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"description\":\"The government is set to restructure loans advanced to the national carrier Kenya Airways, yet again.This could further increase\",\"breadcrumb\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again#primaryimage\",\"url\":\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2021\/03\/treasury_to_restruct60491134b9bdf.jpg\",\"contentUrl\":\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2021\/03\/treasury_to_restruct60491134b9bdf.jpg\",\"width\":800,\"height\":500},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.africa-press.net\/kenya\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Treasury to restructure Kenya Airways’ debts, again\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/#website\",\"url\":\"https:\/\/www.africa-press.net\/kenya\/\",\"name\":\"kenya\",\"description\":\"Just another Africa News Agency Sites site\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.africa-press.net\/kenya\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\",\"name\":\"cfeditoren\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g\",\"caption\":\"cfeditoren\"}}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Treasury to restructure Kenya Airways' debts, again - kenya","description":"The government is set to restructure loans advanced to the national carrier Kenya Airways, yet again.This could further increase","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again","og_locale":"en_US","og_type":"article","og_title":"Treasury to restructure Kenya Airways' debts, again","og_description":"The government is set to restructure loans advanced to the national carrier Kenya Airways, yet again.This could further increase","og_url":"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again","og_site_name":"kenya","article_publisher":"https:\/\/www.facebook.com\/AfricaPressTunisiaa","article_published_time":"2021-03-10T21:10:25+00:00","og_image":[{"width":800,"height":500,"url":"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2021\/03\/treasury_to_restruct60491134b9bdf.jpg","type":"image\/jpeg"}],"author":"cfeditoren","twitter_card":"summary_large_image","twitter_misc":{"Written by":"cfeditoren","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again#article","isPartOf":{"@id":"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again"},"author":{"name":"cfeditoren","@id":"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb"},"headline":"Treasury to restructure Kenya Airways’ debts, again","datePublished":"2021-03-10T21:10:25+00:00","mainEntityOfPage":{"@id":"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again"},"wordCount":426,"commentCount":0,"image":{"@id":"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again#primaryimage"},"thumbnailUrl":"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2021\/03\/treasury_to_restruct60491134b9bdf.jpg","keywords":["Kenya Airways"],"articleSection":["all news","economy","homepage-english"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again","url":"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again","name":"Treasury to restructure Kenya Airways' debts, again - kenya","isPartOf":{"@id":"https:\/\/www.africa-press.net\/kenya\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again#primaryimage"},"image":{"@id":"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again#primaryimage"},"thumbnailUrl":"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2021\/03\/treasury_to_restruct60491134b9bdf.jpg","datePublished":"2021-03-10T21:10:25+00:00","author":{"@id":"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb"},"description":"The government is set to restructure loans advanced to the national carrier Kenya Airways, yet again.This could further increase","breadcrumb":{"@id":"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again#primaryimage","url":"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2021\/03\/treasury_to_restruct60491134b9bdf.jpg","contentUrl":"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2021\/03\/treasury_to_restruct60491134b9bdf.jpg","width":800,"height":500},{"@type":"BreadcrumbList","@id":"https:\/\/www.africa-press.net\/kenya\/economy\/treasury-to-restructure-kenya-airways-debts-again#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.africa-press.net\/kenya\/"},{"@type":"ListItem","position":2,"name":"Treasury to restructure Kenya Airways’ debts, again"}]},{"@type":"WebSite","@id":"https:\/\/www.africa-press.net\/kenya\/#website","url":"https:\/\/www.africa-press.net\/kenya\/","name":"kenya","description":"Just another Africa News Agency Sites site","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.africa-press.net\/kenya\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb","name":"cfeditoren","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g","caption":"cfeditoren"}}]}},"_links":{"self":[{"href":"https:\/\/www.africa-press.net\/kenya\/wp-json\/wp\/v2\/posts\/23936","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.africa-press.net\/kenya\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.africa-press.net\/kenya\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/kenya\/wp-json\/wp\/v2\/users\/84"}],"replies":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/kenya\/wp-json\/wp\/v2\/comments?post=23936"}],"version-history":[{"count":0,"href":"https:\/\/www.africa-press.net\/kenya\/wp-json\/wp\/v2\/posts\/23936\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/kenya\/wp-json\/wp\/v2\/media\/23933"}],"wp:attachment":[{"href":"https:\/\/www.africa-press.net\/kenya\/wp-json\/wp\/v2\/media?parent=23936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.africa-press.net\/kenya\/wp-json\/wp\/v2\/categories?post=23936"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.africa-press.net\/kenya\/wp-json\/wp\/v2\/tags?post=23936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}