Government expected to rescue Kenya Airways

A plan to rescue debt ridden Kenya Airways is expected to rushed through the parliament in Nairobi next week, before it closes ahead of elections.

The state is expected to swap loans it is owed for shares in Kenya Airways, which is roughly $1.4bn (£1.1m) in debt.

A major part of the airline's debt is the $243m worth of unpaid loans owed to the state.

The government will swap this outstanding debt for shares in Kenya Airways as part of a restructuring plan that aims to help the airline move back into profit.

The government hopes to get approval for the deal from MPs before the parliament's term ends next week - ahead of the general election in August.

The state currently owns nearly 30% of Kenya Airways while Air France KLM has a stake of nearly 27%.

Kenya Airways almost went into bankruptcy with an over ambitious plan to expand its fleet and buy several new aircraft at a time when passenger numbers were falling.