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Treasury gives ailing KQ Sh26b in takeover plans

THE STANDARD By Dominic Omondi | February 12th 2021 at 12:30:00 GMT +0300 A Kenya Airways plane taking off from Jomo Kenyatta international Airport(JKIA)in Nairobi, despite heavy loss-making in the market. [File, Standard] The government will inject Sh26.5 billion into cash-strapped Kenya Airways (KQ) as part of its plan to nationalise the airline. In a mini budget released this week, the National Treasury said the cash will be in the form of a shareholder convertible loan. In total, Treasury has set aside Sh27 billion for strategic investments in public enterprises. The remaining Sh500 million will go to the Agricultural Finance Corporation. KQ’s recapitalisation will be a big win for banks which own about 38 per cent of the airline.

More cash for elderly and youth in budget

THE STANDARD By Peter Theuri | January 27th 2021 at 00:00:00 GMT +0300 Senior citizens queue for their monthly stipend at the Matungu-Sub-county headquarters in Kakamega County. Beneficiaries receive on average Sh2,000 monthly. [Benjamin Sakwa, Standard] People aged 70 and above left out of past government cash disbursement programmes will now be considered in this year’s Sh3 trillion budget. The National Treasury has at the same time come up with a social assistance fund to mobilise more resources to fund such programmes. “(The ministry is) cognizant that elderly left out from the programme are affected, especially during difficult times of Covid-19,” says Treasury in the draft 2021 Budget Policy Statement.

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