Kenya Airways Targets Strategic Investor by End of 2026

Kenya Airways plans to onboard a strategic investor by the end of this year as part of its turnaround strategy. The National Treasury has confirmed it is working with the airline to secure an investor who will inject additional capital.

The disclosure came in response to a Public Accounts Committee recommendation that the Treasury develop and submit a detailed debt management and exit strategy for the carrier. The recommendation was contained in the committee’s report on the accounts of the national government for the financial year ending June 2023, adopted by the National Assembly on 3 March 2026.

“Kenya Airways and the government as the majority shareholder are actively seeking to raise capital through a strategic investor to help stabilise, grow its operations and as a turnaround strategy for the airline,” the Treasury stated. “This process is currently ongoing and is targeted to be finalised by December 2026.”

Once consensus is reached, the necessary approvals will be sought and an update submitted to Parliament.

In June the airline indicated it was seeking to raise at least 1.5 billion dollars, equivalent to about Sh194.4 billion, from a strategic investor to be selected through an international tender. At that stage the capital-raising exercise was expected to conclude by the first quarter of 2027.

The government holds a 48.9 percent stake in Kenya Airways. It is expected to support the capital raise in order to provide comfort to potential investors.

Parliament and the International Monetary Fund have been critical of continued taxpayer support for the airline, describing it as a major fiscal risk. The IMF has pushed for a strategic investor to stabilise the listed company and allow the government to reduce its exposure.

In February the Treasury said it would offer the carrier to foreign investors in a deal valued at Sh259.3 billion, or about 2 billion dollars, and attach other assets to sweeten the transaction. The airline has been operating with negative equity.

Kenya Airways’ equity position worsened to negative Sh132 billion last year from negative Sh118.2 billion previously. Total liabilities stood at Sh315.2 billion against assets of Sh183.2 billion.

The government has indicated it will continue to meet pressing financial needs at the airline throughout 2026 while the search for an investor continues. Once a new investor is secured, direct cash injections are expected to cease.

The process remains one of the most closely watched corporate transactions in Kenya’s aviation sector.