Africa
Kenya asks Nigeria, Ethiopia to repatriate earnings
The Kenyan government is negotiating with its counterparts in Nigeria and Ethiopia to repatriate tens of millions of dollars that belong to the country’s flag carrier, Kenya Airways.
The funds are trapped in those nations due to a shortage of foreign currency.
Kenya Airways claims that the impact of high fuel prices and the lack of dollars in Lagos and Addis Ababa on its business has caused a loss of $82 million (£70 million) in the first half of this year.
However, company representatives refused to say how much it is unable to repatriate from the two nations.
The airline claims that government representatives are looking into diplomatic avenues to resolve the issue.
According to the International Air Transport Association (IATA), foreign carriers may be stranded in Nigeria with up to $464 million.
Dubai-based Emirates Group said earlier this month that all flights to Nigeria would be cancelled beginning in September due to the Dollar problem.
The local currency must be used by foreign airlines to purchase services in the host nation before being changed to US dollars and sent back to the place of origin of the airline.
Therefore, it is challenging for airlines to withdraw their earnings due to a lack of foreign currency.
