- Kenya Airways’ current liabilities rose to $845.5 million in half-year 2022.
- The airline is set to receive an additional $300.1 million worth of bailouts from the Kenyan government.
- The National Treasury of Kenya has described the bailouts are strategic investments.
Kenya Airways received $94.1 million (Sh11.3 billion) worth of loans from the National Treasury of Kenya, about half of the $166.7 (Sh20 billion) that was approved by the government during the period.
The airline has been receiving bailouts from the Kenyan treasury over the years, including $91.7 million (Sh11 billion) in 2020 and $116.7 (Sh14 billion) in 2021.
In July this year, an additional bailout of $300.1 million (Sh36 billion) was approved.
The National Treasury of Kenya has said that the bailouts are strategic investments by the government, after earlier plans to nationalise the airline faltered.
Meanwhile, the airline also disclosed that its current liabilities rose by $170.9 million (Sh20.5 billion) to $845.5 (Sh101.5 billion) during the half-year period.
According to information contained in the airline’s latest earnings report, as seen by Business Daily, items in the current liabilities include lease liabilities, advance ticket sales and trade payables.
Note that current liabilities are typically debt instruments that must be settled within a fiscal year, albeit in cash.
On the other hand, Kenya Airways’ non-current liabilities (i.e., long-term debts) rose by $23.3 million (Sh2.8 billion) to $1.3 billion (Sh160.7 billion) during the period under review.
Recall that Ikeanumba Africa Magazine earlier reported that Kenya Airways reported a loss of $82.4 million during the half-year period ending June 2022, which marked a 4% reduction compared to a $95.9 million loss in half-year 2021.
The airline has been struggling to recover from its losing streak. The last time Kenya Airways reported a profit was in 2012. Since then, it has reported losses for over nine consecutive years.
And as a result of these losses, it has been relying on debts and government bailouts to sustain itself.
