Kenya Airways

completed

Privatized in 1996, Kenya Airways is the national flag carrier of Kenya. With Nairobi’s Jomo Kenyatta International Airport as its hub, Kenya Airways provides passenger and cargo services linking international and domestic destinations. The company has ordered two B777-200ERs as part of its fleet renewal program that commenced in 1997. The purpose of the project is to provide the requisite pre-delivery financing for the new aircrafts. This would allow Kenya Airways to continue its fleet modernization program and realize its goal of becoming an African world-class private carrier. Tourism is a major contributor to Kenya’s GDP and is the country’s second largest foreign-exchange generator. The project would provide logistics support for the development of the sector and also positively impact the growth of trade and industry through increased traffic flows and greater accessibility to the country and the region. A strengthened airline industry could also benefit job creation and retention, with travel and tourism employment currently represents almost 8% of the country’s total employment. With the current difficult global climate for the aviation sector resulting from heightened security concerns, depressed passenger traffic and higher operating costs post September 11, the availability of aviation financing in the region is in shorter supply, and IFC’s investment could help bridge such financing gap.