The Kenyan Government, through the treasury has loaned out Sh5 billion on commercial terms to Kenya Airways PLC (KQ) to facilitate the scheduled engine overhaul programmes on its E190 Embraer fleet just a month after it wrote off an Sh24.2 billion loan to assist the loss-making airline bounce back to profitability.
KQ chair Michael Joseph says the airline has received the Sh5 million grant to renovate engineering operations and general administration in a letter addressed to Nairobi Securities Exchange boss Geoffrey Odundo.
“KQ through the national treasury made a loan on commercial terms of Sh5 billion for the purpose of enabling KQ to complete the scheduling engine overhaul program on its E190 Embraer fleet and fund its general working capital requirements,” the statement reads.
Joseph has also urged investors towisely trade when dealing with the airline securities since a company restructure may affect bills. “The possible restructuring may once be confirmed in greater detail have a material effect of the price of KQ securities, therefore, shareholders are advised to exercise caution when dealing in KQ’s securities until a further announcement is made.”
Allan Kilavuka was recently appointed as the CEO following Sebastian Mikosz’s resignation.
In 2019, KQ’s half-year results fell to Sh8.56 bn attributing its losses to increased operating costs in the wake of expanding to new routes and the return of two Boeing 787 planes that had been subleased to Oman Air.
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