Kenya government takes control of Kenya Airways in debt swap agreement

The Kenyan government and domestic lenders have agreed to convert more than $400 million of the debt of Kenya Airways into equity, giving the government a controlling stake in the airliner.

The government has given Kenya Airways more than $200 million of Kenyan shilling and dollar-dominated loans, the airline said in a statement on Monday to the Nairobi stock exchange.

The agreement will increase the government's stake from 29.8 percent to 48.9 percent.