Kenya's Cabinet approves US$350m for Kenya Airways and KSh 23.74bn for pending bills

Kenya's Cabinet approved US$350 million in shareholder financing for Kenya Airways on 9 October 2026, The Star reported. The money is to be released in tranches under the oversight of the National Treasury and repaid over up to 10 years. The Star gave the shilling value as KSh 45.4 billion.

The financing is meant to help the national carrier meet urgent financial obligations, maintain aircraft and return grounded planes to service, the Kenyan news site Kahawatungu reported the same day. It can be converted into equity, subject to the necessary approvals.

Cabinet also endorsed converting KSh 122 billion in existing government loans, with accrued interest, into an equity-qualifying tradable instrument, The Star reported. According to the paper, a government statement issued after the Cabinet met at State House, Nairobi, said the airline contributes more than US$1.3 billion a year to Kenya's gross domestic product. Capital FM said President William Ruto chaired the meeting. The Star said the measures still need corporate, shareholder and regulatory approvals.

In a separate decision, Cabinet approved the settlement of 28,726 verified pending bills worth KSh 23.74 billion, Capital FM reported. Each bill is KSh 50 million or less. The Star said they make up 98 per cent of the 29,257 claims recommended for settlement, and that some suppliers have waited since 2005.

The Pending Bills Verification Committee received 115,617 claims worth KSh 664.8 billion and recommended 29,257 claims worth KSh 155.34 billion for settlement, according to Kahawatungu. Verified bills above KSh 50 million will be settled progressively.

The National Treasury will oversee the payments, with priority for micro, small and medium enterprises, especially those owned by women, young people and persons with disabilities, Capital FM reported. The Star said the decision follows an earlier clearance of more than KSh 80 billion in pending bills in the roads sector.

Cabinet also cleared three road corridors, Capital FM reported: the 253-kilometre South Rift–Lake Region Gateway Corridor, the 256-kilometre Great Highlands Connectivity Corridor and the Lake Victoria Ring Road, which is about 400 kilometres long. The corridors are under the Roads for Rural Economic Development Programme and are meant to link farming areas, fishing communities and trading centres to wider markets.

Cabinet approved an additional KSh 12.83 billion to complete the Thwake Multipurpose Dam. According to Capital FM, the dam is expected to supply 150,000 cubic metres of water a day to about 1.3 million people in Makueni and Kitui counties and in Konza Technopolis.

On energy, Cabinet adopted the Kenya National Energy Compact, which aims to mobilise about KSh 2.47 trillion (US$19 billion) and connect 5.1 million more households to electricity by 2030, Capital FM reported. It also approved a US$8.8 million electric cooking programme for 100,000 appliances in Nairobi, Kiambu, Machakos and Kajiado counties.

Capital FM listed further decisions from the meeting. Cabinet adopted the Sessional Paper on Transforming Education, Training and Research and the National Insurance Policy 2026. It cleared the Architectural and Quantity Surveying Practitioners Bill 2026, the Geographical Indications Bill 2026, the Warehouse Receipt System (Amendment) Bill 2025, the Prisons Bill 2026 and the Probation of Offenders Bill 2026. Cabinet also backed the opening of a European Bank for Reconstruction and Development office in Nairobi and approved double taxation agreements with Belgium and the Czech Republic.

Cabinet also reviewed Kenya's preparedness after a single imported Ebola case involving a patient who has since died, Capital FM reported. The government said surveillance and screening measures are in place and urged the public to stay calm and follow official health advisories.