Treasury Cabinet Secretary Henry Rotich said the restructuring would be concluded this week. [Photo/onemileatatime.boardingarea.com]
A group of companies that are owned by Kenya Airways (KQ) is set to sign a deal to acquire a 38.1 percent stake at the national carrier as part of the ongoing debt restructuring plan on Monday afternoon.
The move will see the government increase its stake in Kenya Airways to 48.9 percent.
Kenya Airways’ long-time partner Royal Dutch Airlines (KLM) will lose three-quarters of its shareholding in the national carrier in a new ownership structure that now puts the Government in the driver’s seat.
The new setup is part of a recovery plan that KQ has been undertaking for more than a year.
The plan, which is set to be concluded this week, will see KLM’s shareholding substantially whittled down to seven percent from 26.73 percent while tightening the State’s grip on the struggling airline by increasing its stake to 48.9 percent from 29.8 percent previously.
The Dutch carrier, which for two decades has been calling the shots, will also lose crucial control over the national carrier’s management after the deal relegated it to having one member on the board of directors. It previously had two directors.
Treasury Cabinet Secretary Henry Rotich said yesterday the restructuring would be concluded this week.
“The Government is kick-starting the closing process of the transaction, which is programmed to be completed this week,” said Mr. Rotich at a press briefing in his office.