Kenya’s National Treasury has rejected a proposal by cash-strapped Kenya Airways (KQ) for a fresh financial bailout estimated at $499.77 million, spelling doom to the operations of the loss-making national carrier.
Chief executive Allan Kilavuka told local media in March,that the airline had proposed a $500 million financial bailout, but the government has only disbursed Ksh25 million ($227,270), since the last financial year.
“The airline has received Ksh25 million ($227,270). We are extremely appreciative of the support we have received so far, considering the many industries government is supporting in these unprecedented times,” Kilavuka said in an emailed response.
Meanwhile, Stanley Kamau, the acting Director General in-charge of Public Investments and Portfolio Management Directorate at the National Treasury said that the government is unaware of the fresh bailout proposal and as such no allocation for that expenditure has been factored into the budget for the current (2021/22) fiscal year.
“We have not received any bailout request from Kenya Airways. No. We haven’t received any. We have not discussed with KQ about this bailout for 2021/2022 with anyone,” Mr Kamau disclosed these during an interview last week in the East African.