Sessional Paper No. 08 of 1986 on Government Guarantee of a Loan to Kenya Airways Limited from Kenya Commercial Bank Limited, National Bank of Kenya Limited, Barclays Bank of Kenya Limited, Commercial Bank of Africa and Standard Chartered Acceptances Limited

Abstract

KA, as the National Airline and flag carrier, plays an important and critical role in the promotion and sustenance of our Nationhood; the tourist industry and the export trade; especially of perishables. KA has agreed with AIRBUS INDUSTRIE' agroupment d'interet economique' of France for the supply of two A310-300 aircraft known as Airbus together with relative accessories in order to improve its service and compete with other carriers. The Government has agreed to guarantee a loan of £19,000,000 to be made to Kenya Airways Limited (hereinafter referred to as 'KA) by Kenya Commercial Bank Limited, National Bank of Kenya Limited, Barclays Bank of Kenya Limited, Commercial Bank of Africa, Standard Chartered Bank Africa PLC (hereinafter referred to as "the Banks").