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Inside Sh11bn KQ loan deal with government
Monday April 19 2021
By BONFACE OTIENO
The airline took the debt in two tranches of Sh5 billion followed by Sh6 billion.
The Sh5 billion loan has a concessional interest rate of three percent per annum – less than a quarter of the rate charged by commercial banks and matures in five years.
The carrier will pay an interest of Sh150 million per year on the loan or a total of Sh750 million over the five years.
Kenya Airways #ticker:KQ has revealed the terms of an Sh11 billion loan it took from the government in the year ended December to fund its operations at a time the Covid-19 pandemic had hurt its cash flows.
IMF and some key policy queries for Kenyans to ponder
Friday April 09 2021
By DENNIS KABAARA
Summary
The IMF will advise and finance the government’s programme to address immediate challenges of the coronavirus pandemic.
But the real programme objective is to gradually stabilise the public debt.
There will be short-term support owing to Covid-19, but the long-term vision is a reduced budget deficit through revenue growth and cost rationalisation.
Written through gritted and clenched teeth, the web post ends thus: “The alternative to this financing is much sharper fiscal consolidation or much more expensive borrowing on commercial terms”. I refer to the International Monetary Fund’s (IMF) Frequently Asked Questions (FAQ) on Kenya response to this week’s outcry over loans.