Kenya govt takes control of Kenya Airways in debt swap agreement
The agreement will increase the government’s stake from 29.8& to 48.9%.
NAIROBI - The Kenyan government and domestic lenders have agreed to convert more than $400 million of the debt of Kenya Airways into equity, giving the government a controlling stake in the airliner.
The government has given Kenya Airways more than $200 million of Kenyan shilling and dollar-dominated loans, the airline said in a statement on Monday to the Nairobi stock exchange.
The agreement will increase the government’s stake from 29.8% to 48.9%.