NAIROBI (Xinhua) --
Kenya plans to increase its stake in the
national airline from 29.8 percent to 48.9 percent as part of
efforts to revive the loss-making firm, a senior government
official said on Monday.
of the National Treasury Henry Rotich said in a statement
released in Nairobi that the government advanced loans to
Kenya Airways (KQ) amounting to approximately 240 million U.S.
“As part of the
restructuring of Kenya Airways, the loans will be converted
into equity thereby increasing government’s stake from 29.8
percent to 48.9 percent,” Rotich said.
“As a result of
the transaction, the government shall acquire effective
control of Kenya Airways as a matter of public interest,” he
official noted that the increased government shareholding will
be effected through an issue of new ordinary shares of Kenya
Airlines credited as fully paid.
Kenya Airways made
a pretax loss of 100 million dollars for the financial year
ended March 31, which is an improvement for the previous
year’s 260 million dollar loss.