This archive report was first published on 20 June 2020.
On March 22, Kenya's government imposed restrictions on international passenger flights to curb the spread of the coronavirus, severely impacting Kenya Airways.
The airline, which needs funds for plane maintenance, staff salaries, and utility bills, had requested a Sh7 billion emergency bailout from the Treasury.
However, Treasury Cabinet Secretary Ukur Yatani stated that the government is focused on a long-term solution, specifically the nationalization of Kenya Airways, which was approved by lawmakers in July.
Yatani emphasized that the airline's financial troubles extend beyond the pandemic, citing 'structural challenges' that require a comprehensive restructuring plan.
According to Yatani, a restructuring plan backed by the Treasury and Transport ministry is ready and will be unveiled in the coming weeks.
Kenya aims to emulate countries like Ethiopia, which operate air transport assets under a single company, using funds from profitable parts to support others.
Yatani declined to make any commitments regarding the bailout, stating, 'We are not making any commitments at this stage.'
