Kenya Airways gets $283m more state support in FY22/23

Kenya Airways will get additional state support of KES34.9b (US$283.2m) to help the cash-strapped national carrier meet overdue payments of KES24b (US$194m), including to lessors, operations, and maintenance. This has emerged from a letter of intent sent on December 7, 2022, to International Monetary Fund Managing Director Kristalina Georgieva by Kenya's National Treasury & Planning Cabinet Secretary Njuguna Ndung'u and Central Bank of Kenya Governor Patrick Njoroge. The letter is contained in the IMF's December 2022 status update on Kenya, declaring it had completed its fourth review of extended fund and extended credit facilities for Kenya providing a US$447.39m disbursement. From it, it emerges that Kenya Airways remains insolvent with the highest cost base among regional airlines, even as it met 75% of its targeted cost reduction in FY2021/22.<br/>