Banks are now betting on a Treasury guarantee to recover their loans from Kenya Airways (KQ) as opposed to the airline’s cash flows, citing the weakened business model in the Covid-19 environment.
Eleven local banks including Equity #ticker:EQTY, KCB Group #ticker:KCB and Co-operative Bank #ticker:COOP, in 2017 converted $223 million (Sh24 billion) loans into shares after the Treasury offered a $750 million (Sh80.9 billion) guarantee that also covered the US Exim Bank.
