J+

Get rid of ads & unlock exclusive premium content

Go premium

7-day free trial
Julisha News Logo
HomeNewsBusinessPoliticsSportsTechnology
NEW
  • News
  • Business
  • Politics
  • Sports
  • Technology
    NEW
/

Get Premium Access

Subscribe to Julisha Premium for exclusive content, ad-free reading, and early access to breaking news.

Julisha IconJulisha

Your trusted source for comprehensive news coverage, bringing you accurate and timely stories from Kenya and around the globe.

Quick Links

NewsBusinessPoliticsSportsTechnologyNEW
Trending NowEditor's Picks

Company

About UsContact UsCareersAdvertise With UsPress Releases
123 Kenyatta Avenue, Nairobi
+254 700 000000
info@julisha.co.ke

Newsletter

Stay updated with our latest news and special offers.

Legal

Terms and ConditionsPrivacy PolicyCookie PolicyCopyright

© 2025 Julisha News. All rights reserved.

SitemapAccessibilityHelp Center

    More Articles Like This

    Join our growing community:

    Instagram• Join Community
    Facebook• Join Community
    WhatsApp• Join Community
    1. Home
    2. /
    3. business

    Kenya Airways Debt Restructuring

    Oct 2, 2024
    2 mins read
    Kenya Airways Debt Restructuring
    Premium Content

    Kenya Airways Debt Restructuring. Banks Offered Bond Swap as Airline Misses Loan Deadline.

    Kenya Airways (KQ) has reached a critical juncture in its debt restructuring efforts as the deadline for settling Sh19.3 billion ($149.9 million) in loans from top commercial banks lapsed.

    The 10 banks, including Equity, KCB, and Cooperative Bank, collectively own 38.1% of the airline and have been offered a 6.5-year Treasury bond in exchange for the outstanding debt.

    The company reported its first half-year profit in over a decade in 2023, with a profit after tax of Sh513 million for January to June, overturning a Sh21.7 billion loss in the first half of 2022.

    Despite this positive development, KQ still faces a negative equity position of Sh123.6 billion, a result of mounting debts and prolonged financial distress.

    The proposed debt-to-bond conversion, along with the anticipated capital injection from a strategic investor, is crucial to addressing this deficit and securing KQ's future.

    The Kenyan government, which holds a 48.9% stake in the airline, has been navigating a delicate balance in its efforts to support KQ's turnaround.

    The recent withdrawal of the Finance Bill, which would have collected Sh346 billion in taxes this year, has further complicated matters, making it difficult for the Treasury to settle the bank debts in cash.

    This financial strain led to the bond swap option being triggered as part of the guarantee pact.

    "We want to remove any potential risk of not paying loans as and when they fall due. We want to deplete our debt stock quite significantly and, of course, when the new investor comes, they will increase equity since part of their money will be used to pay down debt." KQ CEO clarified.

    KQ's CEO, Allan Kilavuka, has emphasized the company's focus is on reducing debt and attracting new investment

    Premium Content

    Subscribe to Julisha Premium for just KES 99/week to unlock this article and all premium content.

    Subscribe NowLogin
    DIG Eliud Lagat earns over Ksh 650,000 monthly
    business
    Jun 10, 2025
    3 mins read

    DIG Eliud Lagat earns over Ksh 650,000 monthly

    DIG Eliud Lagat earns over Ksh 650,000 monthly

    Read article
    Banks Face Uphill battle to meet sh10bn capital rule
    business
    May 6, 2025
    5 mins read

    Banks Face Uphill battle to meet sh10bn capital rule

    Banks Face Uphill battle to meet sh10bn capital rule

    Read article
    America thinks China’s $1.1T in Treasuries don’t matter in trade-war
    business
    Apr 17, 2025
    3 mins read

    America thinks China’s $1.1T in Treasuries don’t matter in trade-war

    America thinks China’s $1.1T in Treasuries don’t matter in trade-war

    Read article
    A Comprehensive Guide : How to Open a Matatu SACCO in Kenya
    business
    Mar 9, 2025
    7 mins read

    A Comprehensive Guide : How to Open a Matatu SACCO in Kenya

    A Comprehensive Guide : How to Open a Matatu SACCO in Kenya

    Read article
    US Treasury yields record lows as investors await key home-price data
    business
    Feb 26, 2025
    3 mins read

    US Treasury yields record lows as investors await key home-price data

    US Treasury yields record lows as investors await key home-price data

    Read article
    Kenya & Other Poor Countries Reject $300 Billion Donation
    business
    Nov 24, 2024
    5 mins read

    Kenya & Other Poor Countries Reject $300 Billion Donation

    Kenya & Other Poor Countries Reject $300 Billion Donation

    Read article
    50,000 University Students Unable To Pay Fees Under New Funding Model
    business
    Sep 25, 2024
    4 mins read

    50,000 University Students Unable To Pay Fees Under New Funding Model

    A staggering 50,000 university students in Kenya are struggling to pay their Tuition fees under the new funding model. This crisis highlights the urgent need for solutions to ensure access to education for all.

    News
    Read article