Economy
Treasury lends Kenya Airways Sh16bn without a repayment plan
Thursday December 21 2023
Kenya Airways planes at the Jomo Kenyatta International Airport. FILE PHOTO | NMG
The Treasury funded Kenya Airways (KQ) to the tune of Sh16.27 billion without a loan agreement or recovery mechanism last year, the Auditor-General has revealed.
In a special audit on the Treasury’s use of public funds under Article 223 of the constitution, which allows the withdrawal of funds to use for emergency purposes that had not been factored during budget formulation, Auditor-General Nancy Gathungu faulted the Treasury for releasing the funds without an agreement and without a clear plan on how it will get back the money. The government holds a 48.9 percent stake in the national carrier.
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