Editor's Review

The money will be used to meet urgent financial obligations, including aircraft maintenance and returning grounded planes to service.

President William Ruto's Cabinet has approved Ksh45.3 billion in shareholder financing for Kenya Airways.

In a Cabinet despatch published  Friday, October 9, the Executive explained that the investment will support the national carrier's turnaround.

The money will be used to meet urgent financial obligations, including aircraft maintenance and returning grounded planes to service.

"The funds will be disbursed in tranches under National Treasury oversight, with a repayment period of up to 10 years and the possibility of conversion into equity, subject to the necessary approvals," the despatch read.

The Cabinet further endorsed a proposal to convert existing government loans and accrued interest to Kenya Airways amounting to Ksh122 billion into an equity-qualifying tradable instrument to strengthen the airline’s balance sheet and support future capital raising.

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A file photo of President William Ruto hosting a cabinet meeting.

According to the Ministers, the new resolutions are part of a long-term turnaround plan for Kenya Airways,

"They are intended to safeguard an airline that contributes more than USD1.3 billion annually to Kenya’s GDP through tourism, trade and regional connectivity. Implementation remains subject to the necessary corporate, shareholder and regulatory approvals," the despatch added.

Cabinet also approved payments of verified Government pending bills of KSh50 million and below totalling KSh23.74 billion. The National Treasury will oversee implementation, releasing much-needed funds to businesses struggling with delayed Government payments

"Priority will be given to micro, small and medium enterprises, particularly those owned by women, young people and persons with disabilities. The remaining verified bills exceeding KSh50 million will be settled progressively, ensuring that larger claims are also addressed," the despatch added.

Earlier, Kenya Airways posted a Ksh16.1 billion net loss for the first half of 2026. This includes Ksh10.6 billion loss in operations.

The national carrier revealed that its assets depreciated from Ksh183billion to Ksh180 billion in comparison to the same period under review in 2025.

At the time Kenya Airways Board Chair Kiprono Kittony blamed the performance on geopolitics, high fuel costs, and declining capacity.