Kenya’s Encomm Faces Loan Default After BAe ATP Support Exit
Kenya-based Encomm Aviation has warned that it may be unable to repay a USD16 million loan backed by Sweden’s Exportkreditnämnden after BAe Systems withdrew product support for the BAe ATP aircraft, effectively grounding the carrier’s fleet and halting operations.
The financing, arranged in 2017 through Svensk Exportkredit to support the acquisition of four ATP freighters from West Atlantic Sweden, is now at risk of default, Encomm said in a statement dated December 8, 2025. The airline became the world’s last active operator of the BAe ATP in 2023.
Encomm claims it was assured by senior BAe Systems leadership that product support would continue for at least five years, or for as long as a single ATP remained in service. Just over a year later, the manufacturer allegedly terminated support without consultation, leaving the airline unable to continue flying the type.
The resulting operational collapse led to more than 50 job losses and the cancellation of a year-long World Food Programme contract. Between March 2023 and September 2025, Encomm’s ATP fleet transported 18,677 metric tonnes of humanitarian aid across Somalia, South Sudan, Tanzania, the Democratic Republic of the Congo, and Chad.
The airline is now pursuing GBP187 million (USD250 million) in damages from BAe Systems in the United Kingdom, alleging negligent misrepresentation and misstatement. Encomm director Jackton Obuola said the withdrawal of support occurred “overnight,” putting both lenders and East African humanitarian supply chains at risk, even as BAe Systems reports record profits and major defence contract wins.
From 2023, Encomm acquired 12 long-stored ATP aircraft from West Atlantic Sweden, including ten freighters and two passenger variants, and invested heavily in a long-term revival programme. This included securing the world’s only operational full-motion ATP simulator. The airline obtained its air operator’s certificate and approved maintenance organisation approval from the Kenyan Civil Aviation Authority in August 2024 and had planned to launch passenger services in late 2025.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com