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Friday, November 15, 2024

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    Kenya Airways missed FX payments of $28 million

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    The amount of money that Kenya’s national airline is attempting to repatriate from Ethiopia, Malawi, and Nigeria is $28 million (£24 million), according to a BBC report.

    The announcement was made by Kenya Airways Chief Executive Allan Kilavuka one day after the airline announced a $82 million deficit for the first half of 2022.

    It is one of the airlines that, as a result of a foreign exchange crisis, is unable to withdraw its profits from the three African nations.

    Foreign airlines must sell their services in local currency; this money is then exchanged for US dollars and sent back to the nation of the airline.

    Lack of available foreign cash has prevented this, which has proven to be a major setback for Kenya Airways’ operations, which have been losing money recently.

    The Kenyan government, one of its key shareholders, has provided cash crucial to the company’s plans to generate a profit.

    The airline claims it is depending on diplomatic negotiations facilitated by Kenyan officials for the release of the monies in Ethiopia, Malawi, and Nigeria.

    Up to $1 billion, according to the International Air Transport Association (Iata), is owing to airlines in Africa, which adds another another danger to an already fragile aviation sector already struggling with the Covid-19 outbreak.

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