Kenya Airways Secures $50M Loan Amid Delays

Kenya Airways has secured $50 million in short-term loans from local banks to meet urgent cash needs as it awaits approval to launch a $500 million capital raise. The financing will cover essential expenses such as spare parts and engine servicing, according to Kenya’s Business Daily.

CEO Allan Kilavuka said the airline is waiting for government approval of its investment memorandum before it can move forward with the strategic investor search. The Kenyan state, which owns 49% of Kenya Airways, must sign off on the recapitalization plan. “We had hoped to close this in 2024, but are currently waiting for approval from the main shareholder,” Kilavuka noted.

The planned $500 million injection is aimed at stabilizing liquidity, supporting fleet expansion, and diversifying revenue streams. The bridge loan comes as the airline struggles with financial setbacks, posting a $94 million loss for the first half of 2025 compared with a small profit a year earlier. Revenue fell 19% to $577 million, driven by a 14% drop in passenger numbers and reduced capacity.

Operational challenges have compounded the situation, with three Boeing 787-8s grounded due to supply chain disruptions affecting engine availability. One aircraft has since returned to service, with two more expected later this year.

Kenya Airways’ fleet currently stands at 42 aircraft, including nine 787-8s, nine 737-800s, eleven E190s, and four dedicated freighters, alongside Jambojet’s nine Q400s. Kilavuka stressed the airline’s priorities remain restoring full fleet capacity, cutting costs, and completing its long-term recapitalization.

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