The government has launched a global search for a strategic investor to inject between $1.2 billion and $2 billion (Sh154.8–Sh258 billion) into Kenya Airways as part of a sweeping turnaround plan. National Treasury Cabinet Secretary John Mbadi described the strategy as the most significant restructuring in decades, aimed at ending the airline’s reliance on taxpayer bailouts.
The plan includes rationalising KQ’s network, fleet, and workforce, renegotiating collective bargaining agreements, and overhauling its capital structure. The government has already absorbed Sh63.1 billion of the airline’s debt, which will be converted into equity once a new investor comes on board, offering a cleaner balance sheet.
Treasury said the ideal partner must bring operational expertise, not just capital. Despite the reforms, the State insists KQ will retain its national carrier status and JKIA hub advantage, positioning it for sustainable growth and stronger African partnerships.
Source: The Star
The plan includes rationalising KQ’s network, fleet, and workforce, renegotiating collective bargaining agreements, and overhauling its capital structure. The government has already absorbed Sh63.1 billion of the airline’s debt, which will be converted into equity once a new investor comes on board, offering a cleaner balance sheet.
Treasury said the ideal partner must bring operational expertise, not just capital. Despite the reforms, the State insists KQ will retain its national carrier status and JKIA hub advantage, positioning it for sustainable growth and stronger African partnerships.
Source: The Star
