Nairobi, May 26 -- Kenya Airways defaulted on Sh8.5 billion interest on funds borrowed from the government last year, underlining the rising burden of keeping the national carrier in the air for taxpayers.

The interest was due on June 20,2025 but the company had not paid the amount six months later, resulting in the Treasury waiving and deferring the amount.

The non-payment of interest has contributed to the airline's debt owed to the government growing to Sh131.4 billion in the year ended December 2025, up from Sh108.3 billion the year before.

"As at 31 December 2025, the . group had not made payments of interest on the government of Kenya loan as set out in the loan agreements," KQ, as the airline is known by its international code, ...