Kenya Airways (KQ), the national airline of Kenya, is now counting on a new strategic investor to help clear its huge Sh142 billion debt. The announcement was made on 16 June 2025. The move is part of KQ’s plans to find its feet again after years of financial struggles and heavy losses.
The management of Kenya Airways said it wants to bring in a strong strategic investor who will put in fresh capital. This new investment will help the airline pay back its large debts and put it back on a path of financial stability. Kenya Airways has gone through tough years, especially after the COVID-19 crisis and stiff competition from other carriers in Africa. The new move is meant to cut its borrowing, reduce its financial pressure, and help it become more efficient.
Allan Kilavuka, Chief Executive Officer of Kenya Airways, explained that this move is not just about money. It is about adding expertise and a large network to the airline. He said the new investor will bring strong industry knowledge, operations expertise, and a vast route network. This will help Kenya Airways connect more journeys and cut its expenses.
For many years, the government of Kenya has kept a majority ownership in Kenya Airways, holding about 48.9 percent of its shares. The KQ Lenders Company — a group of banks — owns 38.1 percent, while Royal Dutch airline KLM holds 7.8 percent. Small investors own the rest. But this mix made it hard for the airline to raise enough funds on its own.
Allan Kilavuka revealed that many companies, including large airline groups and private equity firms, have shown strong interest in investing in Kenya Airways. These prospective investors have extensive knowledge of the airline industry and can help cut the airline’s expenses, connect more routes, and grow its operations.
Michael Joseph, the chairman of Kenya Airways, supported this view. He explained that a strong strategic investor can help grow services to West Africa and Asia — two regions where Kenya Airways has untapped potential. Currently, Kenya Airways covers 44 destinations and operates a total of 34 aircraft from its base in Nairobi.
Some government officials who chose to stay anonymous explained that the state is ready to back the deal. But the government wants fairness and equity in choosing a strategic investor. There are indications the investor might buy a minority share and the state will retain control to protect its key economic asset.
Aviation experts say this move makes a lot of business sense. They explained that a strong strategic investor can bring technical expertise, a large network of routes, and financial discipline — all things Kenya Airways needs to become profitable again. However, some people are unsure if the deal will clear all the debt and put the airline back on a path to sustained profits.
Shareholders at the Nairobi Securities Exchange (NSE) are also following these developments closely. If the deal is well-structured and backed by strong financial resources, it could lift the price of Kenya Airways’ shares and attract more investors into the airline. Furthermore, a successful deal may allow Kenya Airways to raise more funds through the capital market and cut its borrowing.
As the process evolves, regulators will need to approve the deal, and the government will be a key actor in protecting the country’s interest in its national carrier. If all goes well, the new investor will help clear the Sh142 billion debt and put Kenya Airways back on its feet.
For Kenya and Africa at large, this deal could be a turning point. It may lead to more direct flights from East Africa to West Africa, making it easier for businesses and tourists to move across the continent. It could also boost economic ties and promote trade.
The future of Kenya Airways hangs on this strategic investment, and many will be watching closely to see if the deal delivers the results it promises.
