https://youtu.be/w7hiXXoFFE0

Kenya’s state-owned airline Kenya Airways posted one of the largest losses any East African company has ever recorded, wiping out all of its shareholders wealth and leaving investors questioning if the African carrier was technically insolvent

The Airline, which one of the top airlines in Africa together with Ethiopian Airlines and South African Airways, posted nearly $252 million in losses in the financial year ending March 2015, almost ten times worse than the loss it posted in the previous year.

The carrier, which has posted losses in the last three consecutive years, blamed the huge loss on on tourism slump in the east African nation due to terrorism threats that have made source market countries like US and UK to issue travel advisories.

In a TV interview with NTV, Kenya Airway’s Chief Executive, Mbuvi Ngunze, said they were working on ways to get the airline out of the financial death bed, including a $200 million bridging loan, but also indicated that filing for bankruptcy and delisting from the stock exchange were not out of consideration.

“That is a conversation to have,” Ngunze said at the end of the interview after NTV reporter Wallace Kantai asked him if bankruptcy and delisting were options they were looking at.

“We haven’t had that conversation in earnest but it’s probably one of the things we could put on the table,”  he added.

Ngunze also attributed the unprecedented loss to intense competition from Middle East carriers, and volatility of exchange rates.

The Kenyan shilling has depreciated more than 13 percent against the US dollar in the last 12 months weighed down by a growing import bill locally and a strengthening greenback globally.

“We have had turbulent times but we are regaining our altitude,” Ngunze told a press conference in Nairobi. “The board and management are working to review our strategy to respond to market dynamics.”