The highly publicised Kenya Airways rights issue has an expense budget of Ksh 620 million. This budget is meant to foot the bill for various transactions pertaining to the success of the rights issue offer. The Ksh 20.6 billion rights issue opened on 2^nd April 2012 and closes on 26^th April 2012.

A rights issue is an issue of additional shares by a company to raise additional capital. Each KQ shareholder will have the right to subscribe to 16 new ordinary shares for every 5 ordinary shares currently held.

The budget estimates that media companies will make Ksh 66 million as payment for running advertisements to promote the offer. Citibank will make Ksh 47.6 million for underwriting services, underwriting refers to the process by which investment banks raise investment capital from investors on behalf of corporations and governments that are issuing securities.

Stockbrokers on the other hand will earn Ksh 310 million from the whole process while Capital Markets Authority will earn Ksh 51.7 million in approval fees.

Read more about the expense budget here.