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Kenya Drops Plan to Nationalize Struggling Airline, IMF Says

An Embraer SA 190 passenger aircraft, operated by Kenya Airways Ltd., on the tarmac at Jomo Kenyatta International Airport in Nairobi, Kenya.

An Embraer SA 190 passenger aircraft, operated by Kenya Airways Ltd., on the tarmac at Jomo Kenyatta International Airport in Nairobi, Kenya.

Photographer: Patrick Meinhardt/Bloomberg

Kenya’s government has scrapped a plan to fully nationalize the partly state-owned airline and is looking at other ways to safeguard money it has loaned the carrier, according to the International Monetary Fund.

It will cost a projected $1 billion to restructure Kenya Airways Plc and an injection of the funds by the state will be “unavoidable” as the East African nation’s Treasury has already guaranteed $750 million of debt owed by the carrier, the IMF said.