Kenya Airways is set to undergo massive restructuring in what the National Treasury says is meant to pull the flag carrier from the loss-making territory.

According to National Treasury Cabinet Secretary Ukur Yatani, the national carrier plays a major and

catalytic role in the economic development of the country but is currently facing severe cash-flow

constraints following global lockdowns triggered by the COVID-19 pandemic.

In the full year ended December 31, 2021, the airline saw its net loss narrow by more than half, from Kshs. 16 billion to Kshs. 36 billion.

“The Government as a major shareholder is supporting the restructuring of Kenya Airways to adapt to the challenges facing the aviation industry due to the adverse impact of COVID-19 pandemic,” said Yatani.

Treasury now expects KQ to cut its network, rationalize frequencies of flights, operate a smaller fleet, and rationalize its staff complement.

CS Yatani is expected to later announce budget allocation to meet the restructuring costs of the airline.

By Fred Odanga Azelwa.