Banks force Treasury to pay KQ’s Sh19bn defaulted loan

Kenya Airways plane pictured at Jomo Kenyatta International Airport on April 30, 2024.

Photo credit: File | Nation Media Group

Eight commercial banks forced the Treasury to pay them Sh19.3 billion ($149.9 million) in full for unpaid loans to Kenya Airways and rejected an offer to recover the defaulted debt through a 6.5-year bond.

The lenders, including Equity Bank, NCBA Bank and Cooperative Bank, slapped the Treasury with a default notice after the national carrier indicated it had no cash to settle the debt.

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