Kenya Airways is seeking to raise at least $1.5 billion equivalent to Sh194.4 billion from a strategic investor to be selected through an international tender expected to open in the coming months. The move is the airline’s most ambitious financial overhaul yet, as years of losses and a crushing debt pile take a visible toll on operations.
Board Chairman Kiprono Kittony, speaking publicly on the matter, said: “We are looking at about $1.5 billion in new capital. The idea is we would like to run an open transparent process that will be informed by the information memorandum.”
The airline’s 2025 financial results paint a stark picture. Geopolitics and maintenance issues struck a double blow to the national carrier’s recovery, resulting in a net loss for 2025 of about Sh17 billion. Fuel costs have also played a significant role. Fuel now accounts for between 51 and 52 percent of flight operating costs in Africa, up from about 40 percent previously, largely due to higher fuel prices and levies.
Grounded aircraft have compounded the pain. Three Embraer jets and two Boeing 787 Dreamliners remain out of service awaiting engines and maintenance work, reducing available seat capacity by between 15 and 18 percent.
Despite the grim headlines, management insists the core business is holding. The airline posted positive EBITDA of about Sh14 billion, which management cited as evidence that core operations remain strong. “When we look at Kenya Airways, it is a resilient business. The business is viable and the business continues to stand,” said the airline’s chief executive.
Still, the balance sheet tells a different story. KQ’s liabilities exceeded its assets by a significant margin, with total liabilities standing at Sh315.2 billion against assets of Sh183.2 billion meaning shareholders would recover nothing if the airline were liquidated.
The capital-raising exercise is expected to conclude by the first quarter of 2027, with the government which holds a 48.9 percent stake in the airline expected to support the process, its involvement seen as a guarantee to potential investors.
If the deal succeeds, the carrier has clear ambitions for the fresh funding. Kenya Airways intends to buy and lease newer planes, expanding and modernizing its fleet to increase its route network and number of destinations served across the globe, and seeks to acquire at least 26 more planes increasing its fleet to 60 within the next two to three years.
Chairman Kittony summed up the stakes in a recent interview: “We need to work together so that years from now, it can be said we did what had to be done to keep Kenya Airways and African carriers in business.”
For Kenya’s flagship carrier, the next twelve months will determine whether that vision becomes a reality.
