This archive report was first published on 26 June 2020.
June 26, 2020, marks a significant milestone in the takeover of Kenya Airways by the national government, with a bill to pave the way for the acquisition tabled in parliament for debate.
The National Aviation Management Bill 2020 aims to revert control of Kenya Airways back to the State by October this year, involving the buyout of minority shareholders at a premium and converting shares held by banks into Treasury bonds.
According to a report by Business Daily, Kenya has reached an agreement with Air-France KLM on the offer price, which will be a premium on the carrier's prevailing trading price at the Nairobi bourse.
The National Treasury has confirmed that the transactions will be conducted once the bill is approved, with Cabinet Secretary Ukur Yatani stating, 'We are ready to complete the transactions once Parliament passes the Bill. A lot of work has been done in the background including striking an agreement with KLM and talks are advanced with banks on conversion of their equity to bonds.'
Kenya Airways has been recording significant annual losses since 2014, despite posting growths in its revenues, with the latest financial posting showing a Sh. 12.98 billion net loss.
