Kenya Airways’ government-guaranteed debt increased by 17.3% in the year ending December 2023, driven by a weak Kenyan shilling.
- The debt rose to Sh92.29 billion, up by Sh13.64 billion from December 2022.
- The debt includes a defaulted loan of Sh69.9 billion from the USA Export-Import Bank, which the government is now servicing on behalf of the airline.
- Kenya Airways is one of three entities with loans guaranteed by the government, totaling Sh177.229 billion.
- The depreciation of the Kenyan shilling against major currencies has contributed to the increase in debt.
- The Treasury has paid Sh6.9 billion towards the defaulted KQ debt, with a total payment of Sh53.7 billion to date.
- Kenya Airways remains heavily indebted, with total liabilities of Sh302 billion and a negative equity position of Sh133 billion.