Kenya offers guarantees to national airline

The Kenyan government will offer Kenya Airways’ creditors $750 million in guarantees to help the heavily-indebted and lossmaking airline raise additional capital to continue its recovery. The Ks24.56bn ($238 million) the government has lent the company since 2014 will be converted into equity, while the guarantees will cover $525 million owed to the US Ex-Im Bank and $225 million borrowed from local lenders, reports the Financial Times. Kenya Airways currently owns 29.8% of the airline, Air France-KLM owns 26.7% and the International Finance Corporation, the investment arm of the World Bank, owns 9.6%.