Kenya Airways Open to Multiple Strategic Investors

Kenya Airways is open to securing multiple strategic investors as part of its ongoing turnaround efforts, according to Chairman Michael Joseph. While the airline would prefer a single investor, Joseph noted during a recent interview on Kenya’s NTV that the competitive global market for airline investors may require a more flexible approach.

“We would like one strategic investor, but that may not be realistic. So we are open to more than one, although no specific number has been set,” he said.

Kenya Airways Group CEO Allan Kilavuka previously explained that the airline needs a capital injection to reduce its debt-to-equity ratio. The funds would be used to repay debt and support growth, including fleet renewal, IT upgrades, and operational modernization.

The airline also aims to diversify its income. Non-passenger business—such as MRO services, the KQ Pride training center, cargo operations, and a possible KQ hotel—is expected to reduce reliance on passenger revenue from 88% to 65–70% over five years.

In its financial report for 2024, Kenya Airways posted a record after-tax profit of KES5.4 billion (USD41.7 million), a 124% increase from a loss the previous year. However, fleet shortages and limited capital continue to hinder rapid growth.

Kilavuka confirmed delays in selecting replacement aircraft for the airline’s 14 Embraer E190s due to a global shortage. Kenya Airways is evaluating both Boeing and Airbus options and is currently dry-leasing Boeing 737s and sourcing a Boeing 767-300F freighter to meet short-term capacity needs. The airline also owes the government USD150 million under a shareholder loan agreement.

Related News: https://suspicious-zhukovsky.67-21-117-18.plesk.page/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com