Kenya Opens Search for Strategic Investor in Kenya Airways

Kenya has started the process of looking for a strategic investor in Kenya Airways (KQ), aiming to raise between $1.2 billion and $2 billion to support the airline’s recovery.

Treasury Cabinet Secretary John Mbadi said the government will publish an international expression of interest. He noted that the investor must bring not only money but also strong airline management experience.

The plan includes changes in how the airline operates. These include reviewing routes, improving use of aircraft, and adjusting staffing levels. The government has already taken over Sh63.1 billion of KQ’s debt, which will be converted into shares once a new investor comes on board. This is meant to clean up the airline’s books and make it more attractive to investors.

Currently, ownership of KQ is shared between the Kenyan government (48.9 percent), local banks through KQ Lenders Company (38.1 percent), and Air France-KLM (7.8 percent). The move to bring in a private investor is also linked to Kenya’s commitments under its IMF programme to reduce reliance on state bailouts.

The search for a partner comes at a difficult time for the airline. KQ reported a half-year net loss of Sh12.15 billion in 2025, after posting a short profit in 2024. Some of its Dreamliner aircraft have also been grounded due to engine shortages, affecting flight capacity and passenger numbers.

The government says it wants to protect Kenya Airways’ status as the national carrier and maintain JKIA as a key regional hub, while using a strategic partner to strengthen operations and build stronger business partnerships across Africa.