Treasury slashes Sh10 billion from KQ bailout

The National Treasury has slashed Sh10 billion in support to Kenya Airways (KQ) as the exchequer begins unwinding bailouts to the company. Documents from the first 2022/23 Supplementary Budget indicate the government plans to revise the amount of capital injected into the national carrier to Sh20 billion from the initial Sh30 billion. Previously, the National Treasury had in December disclosed to the International Monetary Fund that it would provide Sh34.95 billion to Kenya Airways including assumed payments for debt service. It said disbursed Sh10 billion in September 2022. The State, which holds the largest share of the carrier at 48.9 percent, has persistently bailed out KQ in recent years, pouring in at least Sh35 billion between 2016 and 2020. Earlier this year, the exchequer in its draft 2023 Budget Policy Statement said it was winding up support to the national carrier, setting a deadline of December this year for an end to persistent bailouts to the carrier.

New regime hawajapewa cut yao hapo ?