Home Business Banks bet on State guarantee to recoup Sh24bn KQ loans

Banks bet on State guarantee to recoup Sh24bn KQ loans

kq, kenya airways, national aviation management bill
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Business Daily | by Patrick Alushula


Banks are now betting on a Treasury guarantee to recover their loans from Kenya Airways (KQ) as opposed to the airline’s cash flows, citing the weakened business model in the Covid-19 environment.

Eleven local banks including Equity, KCB Group and Co-operative Bank, in 2017 converted $223 million (Sh24 billion) loans into shares after the Treasury offered a $750 million (Sh80.9 billion) guarantee…

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