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Parliament backs $750 million state guarantee for Kenya Airways debt

Staff Writer |
Kenyan lawmakers approved a government proposal to guarantee $750 million worth of debt owed by Kenya Airways, part of a broader financial restructuring, parliament said in a statement.

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The loss-making airline, in which Air France KLM and the Kenyan government both have stakes, has struggled to return to profit after tourist traffic slumped four years ago following a spate of attacks by Islamist militants.

The financial restructuring proposal also involves the conversion of a separate $243 million loan by the government into equity.

Private creditors are expected to participate with the conversion of their debt into equity but details have not yet been released by Kenya Airways.