The National Treasury is reported to have secured a Ksh20 billion loan to help Kenya Airways repay another loan it acquired from African Export-Import Bank (Afrexim).
The pending loan owed to Afrexim was secured two years ago.
In a report presented to Parliament by the treasury, the new loan is stated to have been borrowed in June last year.
The Ksh20 billion loan has been borrowed from Eastern and Southern Africa Trade and Development Bank (TDB) and will replace a similar debt owed to Afrexim that is due.
Read: Speaker Justin Muturi Stops PIC From Investigating Kenya Airways-JKIA Take Over
According to the report, the loan will cost the government at least Ksh2 billion in interest expenses and other charges, as per the terms of the debt.
The Treasury document notes: “The loan was borrowed to re-finance and cancel the 2016 syndicated loan facility borrowed to support the turnaround process of Kenya Airways through the restructuring of its balance sheet.”
Additionally, the report states that the loan will be repaid in 10 equal semi-annual tranches from June 21,2019 through to June 21,2029.
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