Nairobi preps bailout for Kenya Airways in 2022 budget

Kenya’s Treasury has agreed to consider an "appropriate recovery plan" for its cash-strapped flag carrier, Kenya Airways, in its 2022 budget in light of the airline's role in supporting the country’s recovery from COVID-19. This is according to the National Treasury's Budget Review and Outlook Paper (BROP) 2021, faulted by stakeholders and the public for not outlining a recovery plan for the airline. "Some state-owned agencies and parastatals require a state bailout and cash injection, e.g. Kenya Airways. The 2021 BROP has not outlined any measures to address this problem. An appropriate recovery plan should be considered in the budget review," they said. They argued the company was one of key state corporations “fuelling economic growth and the creation of employment” and should receive state support. “This is duly noted and will be done during sector allocations,” the Treasury wrote in response to the feedback. The National Treasury prepares and submits the BROP to the Cabinet for approval by September 30 each financial year in line with the country's Public Finances Management Act. Kenya's Business Daily reported the Treasury recently opened a three-day public hearing which is to inform sectoral budget proposals to be considered in the Appropriation of the Budget Bill for the next financial year. The Bill should be ready for parliamentary approval by March 31, 2022, a month earlier than legally required, because of elections slated for August next year.<br/>