NAIROBI (Reuters) – Kenya Airways, which reported a record loss in its year ended March, may require a $500-600 million bailout, the Kenyan finance minister said on Tuesday.
Profit at the carrier, which is part-owned by AirFrance-KLM, lost 29.71 billion shillings ($294.30 million) before tax during the year. Debts climbed and shareholder equity turned negative.
The losses were driven by a slump in Kenyan tourism caused by frequent Islamist militant attacks, at a time when the carrier had taken on debts to buy new planes.
Henry Rotich told Reuters the final figures and the form of recapitalisation would depend on a turnaround plan being prepared by Mckinsey and Seabury consultants.
“We are looking at between $500-$600 million or thereabouts,” he said by phone.
“This report is not yet out and as soon as we get it and we interrogate it and we feel comfortable with it, then we will know the actual numbers that the experts recommend.”
($1 = 100.9500 Kenyan shillings)