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Originally published by The Kenyan Wall Street
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business
October 1, 2025
3h ago

MPs Demand Repayment Plan From KQ As State Bailouts Persist

MPs Demand Repayment Plan From KQ As State Bailouts Persist

KQ is facing fresh pressure to spell out how it intends to repay billions of shillings in government bailouts...

✨ Key Highlights

Kenya Airways (KQ) faces intense scrutiny from Kenyan lawmakers, demanding a clear repayment strategy for billions in government bailouts. This comes as the loss-making national carrier continues to rely heavily on taxpayer support amidst persistent financial woes.

  • The Treasury disbursed KSh14.3 billion in the fiscal year ending June 2024 for a loan, with an additional KSh18.8 billion paid this year.
  • Kenya Airways Chief Executive Allan Kilavuka stated a KSh19.7 billion working capital loan was converted into a shareholder loan due to cash flow pressures exacerbated by COVID-19.
  • An Auditor-General's report in February criticized the Treasury for providing over KSh55 billion to KQ between 2019 and 2023 without a clear repayment plan or formal agreements.

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