KENYA GOVERNMENT MAKES ADDED FINANCIAL PROVISIONS TO PAY FOR KQ SHARES
It was learned overnight that the Treasury in Nairobi has made added provisions to set aside a further 2.5 billion Kenya Shillings to fully pay up their portion of 26 percent, the government holds as a golden stake in Kenya Airways, the countrys national airline.
Last year did parliament initially slash the required amount by half but additional funds had to be found to ensure that the crucial 51 percent shareholding by Kenyan institutions and individuals could be maintained to ensure the required status of a national airline vis a vis bilateral agreements and traffic rights in place.
At a share right price of 14 Kenya Shillings per share the transaction is thought to cost the Kenyan government, and ultimately the taxpayers some 4.8 billion KShs but with the prospects of regular dividends declared and paid into the states coffers.
The take up of share rights is according to financial analysts from Nairobi also on course, though final statements are only expected to be made after the 27th of April, when the offer formally expires.
Meanwhile is the airline set to receive another Embraer E 190 in a months time while also preparing for the launch of nonstop flights to Delhi from 15th of May, providing a crucial link for trade and tourism between the two countries. Watch this space.