Kenya to Pay Sh3 Billion to US Bank for Overdue KQ Loans

Kenya to Pay Sh3 Billion to US Bank for Overdue KQ Loans (News Central TV)

The Treasury is expected to wire Sh3.27 billion ($24.8 million) to the Export-Import Bank of the US on Thursday for overdue principal and interest payments of Kenya Airways (KQ). This payment will bring this month’s total to Sh8 billion.

On March 3, the Government of Kenya paid $37.4 million (Sh4.77 billion) in overdue principal to fulfill their debt obligations as per a demand notice issued by the Export-Import Bank of the US. Additionally, an amount of $24.8 million is expected to be processed by March 31, 2023. Sean Bartlett, Senior Vice President of Communications at Exim Bank, confirmed this information.

An overdue payment notice, sent out by the Exim Bank, requires repayment of outstanding funds. If customers fail to settle these balances, the business may take legal action. The notice does not ask for immediate full repayment of the loan balance in all cases.

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Kenya to Pay Sh3 Billion to US Bank for Overdue KQ Loans (News Central TV)

“Exim is working closely with the Government of Kenya on the next steps to put Kenya on the best path forward for future payments. EXIM has a long history of working with the Kenyan government and Kenya Airways,” said Mr Bartlett.

In 2022, the government of Kenya assumed responsibility for a KQ debt totaling $525 million (Sh68.91 billion) after the airline defaulted on its payment obligations.

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