ANNOUNCEMENT 18 Jun 2015
On 18 June 2015, the government of Kenya announced in an official Parliament report, that it had bailed out the national carrier Kenya Airways.
NUMBER OF INTERVENTIONS
Reuters (2015). Kenya Airways gets $240 mln in loans from the government, Afreximbank. http://af.reuters.com/article/idAFKCN0R20PV20150902
Republic of Kenya (2015) REPORT OF THE SELECT COMMITTEE ON THE INQUIRY INTO THE AFFAIRS OF KENYA AIRWAYS LIMITED AND ITS SUBSIDIARIES.
Soft Kenya (2016) List of Airlines in Kenya. https://softkenya.com/airline/
On 18 June 2015, the government of the Republic of Kenya officially announced that following the Parliament’s approval on April 2015, it had provided Kenya Airways a loan amounting to 4.2 billion shilling (USD 40 million). In addition, on the same announcement the Kenyan government stated that it provided Kenya Airways the support infrastructure to receive an additional loan of USD 200 million from the Egypt-based Afrexim bank.
The scope of these loans was to enable Kenya Airways recuperate from the financial losses that it was generating in the recent fiscal years.
Kenya Airways is the flag carrier of Kenya. Kenya Airways is a public-private partnership. The largest shareholders are the Government of Kenya (29.8% ownership stake) and KLM (26.73% ownership stake).
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.