A Bill that will guide the sale of Kenya Airways (KQ) to the State was tabled in Parliament on Thursday, setting the stage for the buyout of minority shareholders at a premium and converting shares held by banks into Treasury bonds.
The loss-making airline, which is 48.9 per cent government-owned and 7.8 per cent held by Air France-KLM, was privatised 24 years ago but sank into debt and losses in 2014.
Kenya has reached an agreement with Air France-KLM on the offer price, which will be a premium on the carrier’s prevailing trading price at the Nairobi bourse.
A consortium of local lenders, who acquired 38 per cent of the company’s equity during the 2017 restructuring, could be paid through government debt, possibly in 10-year Treasury bonds, Mr Yatani said.
Mr Yatani said the State was keen on a long-term solution anchored on nationalisation of Kenya Airways, arguing that the carrier’s financial troubles went beyond the Covid-related woes.
