THE KENYAN Government has taken over 6.7 billion Kenyan Shillings ($122 million) of debt from flag carrier Kenya Airways as a prelude to its privatisation (Flight International, 7-13 June). The move is believed to leave the carrier, which has returned to profit recently after heavy restructuring, with debt of around 2.7 billion Shillings.
The Government is planning to privatise the airline later this year. Around 20% will be available to foreign airlines, with 20% floated on the Nairobi stock exchange and 20% offered to institutional investors. A further 10% would be distributed through an employee share-ownership scheme.
The privatisation process is taking place against a background of improving financial performance at Kenya Airways. The 1994/5 financial year recently ended is thought to have shown a $14 million profit, and this year the forecast is for an advance to $20 million. In 1992/3, the carrier reported a loss of $30 million.
Source: Flight International