Kenya Airways
Kenya Airways flight

Treasury to end Kenya Airways bailouts by December

The government is pledging to develop a financing plan that will see it stop using taxpayers’ money to support the operations of the loss-making Kenya Airways (KQ) by the end of December 2023.

National Treasury has disclosed the plan, without giving details, in the draft 2023 Budget Policy Statement released Wednesday evening.

“To support the aviation industry, the government will develop a turnaround strategy for Kenya Airways,” said Treasury in the document.

“A critical plank of this strategy will be a financing plan that does not depend on operational support from the exchequer beyond December 2023.”

The plan, if implemented, could save taxpayers billions of shillings spent annually to keep afloat the national carrier that last returned a profit in 2012.

President William Ruto had earlier indicated that the State was looking for a strategic investor to buy a controlling stake in KQ as a path of weaning it off debts and subsidies and setting it on a growth path.