Kenya asks Nigeria, Ethiopia to repatriate earnings

0
49

The Kenyan authorities are in talks with their Nigerian and Ethiopian counterparts to repatriate tens of millions of dollars belonging to national carrier Kenya Airways. The money is stuck in those countries owing to a foreign currency shortage.

Kenya Airways says its business has suffered the impact of high fuel prices and the shortage of dollars in Lagos and Addis Ababa, leading to a loss of $82m (£70m) in the first six months of this year.

But its officials declined to disclose how much it is unable to repatriate from the two countries.

The airline says government officials are exploring diplomatic channels to find a solution.

Meanwhile, the International Air Transport Association, IATA, has said up to $464m belonging to foreign carriers is stuck in Nigeria.

READ ALSO:  First Kenyans Expel From Afghanistan

Earlier this month, Dubai-based Emirates Group said it would suspend all flights to Nigeria from September, over the dollar issue.

Foreign airlines are required to sell their services in host countries using the local currency, which is later converted to US dollars and repatriated to the airline’s home country.

A shortage of foreign currency therefore makes it hard for airlines to withdraw their earnings.

Watch Leakblast TV channel from around the world

Call Us: +234(0)8170989130

Get us on Whatsapp: +234(0)8170989137

SUPPORT LEAKBLAST JOURNALISM OF INTEGRITY AND CREDIBILITY

Good  journalism costs a lot of money.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble Endeavor.

By contributing to LeakBlast, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Support LeakBlast

LEAVE A REPLY

Please enter your comment!
Please enter your name here