Kenya Airways is pursuing an aircraft-for-equity arrangement as it seeks additional funding, with one investor proposing to provide planes in return for a portion of the carrier’s ownership. This approach forms part of the airline’s broader efforts to finalize its capital-raising strategy within the next few weeks.
Acting CEO George Kamal acknowledged the proposal as part of ongoing discussions, which also include potential equity offerings to strategic partners. Chairman Kiprono Kittony revealed that the airline has received expressions of interest from at least four firms—based in the U.S., China, South Africa, and Singapore. He noted that the board will announce details of the selected investor or investors in the coming weeks.
The financial pressures on Kenya Airways have intensified. For the six-month period ending June 2026, the airline reported a net loss of approximately Sh16 billion, marking its second-largest half-year deficit since 2008. This represents a significant increase over the Sh12.2 billion loss recorded during the same period the previous year.
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Negative equity has worsened, reaching about Sh148 billion, up from Sh132 billion at the end of 2025, while total liabilities now exceed Sh328 billion. The grounding of wide-body jets has further reduced earnings, limiting capacity on high-margin international routes despite strong passenger demand.
Two aircraft, a Boeing 787-8 and a Boeing 777-300ER, have recently returned to service, which Kenya Airways states will help restore lost capacity in the second half of 2026. The carrier’s immediate goals include stabilizing operations, controlling costs, and reducing debt, alongside securing the necessary capital infusion. The Treasury has framed the investor search as part of a broader recapitalization effort expected to conclude by December, following the government’s consolidation of its majority stake earlier this year.
The airline has emphasized that all potential options remain under consideration until a preferred bidder is identified.
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