Nairobi, April 12 -- The government has granted Kenya Airways (KQ) a 12-month break on servicing Sh41.27 billion worth of loans, offering a reprieve to the airline that had defaulted on payments.

The national carrier says in the latest annual report that it had accrued Sh1.8 billion in interest, prompting it to seek a waiver and deferral on unpaid interest and shareholder loans.

"As of December 31, 2022, the group and company had not made payments of interest on the government of Kenya loans as set out in the loan agreements," says Kenya Airways.

"The government of Kenya granted the company a deferral of payment of interest on the loans until December 2023."

The waiver and deferral on the loan will help KQ protect its cash as it conti...