The government has written off a Sh24.2 billion loan advanced to struggling Kenya Airways in the latest move to keep the national flag carrier in the skies.
In budget documents presented in Parliament this week, the Treasury revealed that the loan was part of Sh27.2 billion worth of dormant loans that the Cabinet authorised to be written off.
Kenya Airways, which made another loss of Sh7.5 billion last year, had not made any attempt to repay the loan and it remained outstanding as at June 30, 2018. This made it the biggest recipient of write offs.
The government, which is the biggest shareholder in the airline, has been pumping money into KQ in an attempt to resuscitate it and pull it out of the red. But the airline has remained in the loss making territory for the last five years.
possunt quia posse videntur