Kenya Airways reported a net loss of Sh16.1 billion for the first half of 2026, a rise of 32 percent from the Sh12.2 billion loss recorded in the same period a year earlier. The deepening deficit has heightened concerns among both private investors and government officials who monitor the airline’s financial health.
Revenue climbed 9 percent to Sh81.25 billion, while operating costs surged 13.8 percent to reach Sh91.9 billion, widening the gap between earnings and expenditures. The widening spread has reduced the carrier’s operating margin.
Passenger numbers slipped by a similar margin, a decline that the airline attributes to reduced capacity caused by supply-chain bottlenecks and a shortage of serviceable aircraft. The drop was felt most on regional routes that rely heavily on narrow-body jets, where limited availability forced the carrier to cut seats.
Freight activity provided a counterbalance, with cargo volumes rising 18 percent, showing that the airline’s freight arm remains a steady source of income. Key markets in East Africa and the Middle East contributed the bulk of this growth, reinforcing the strategic importance of the cargo network.
Acting chief executive Dr George Kamal described the demand for cargo as resilient, but warned that the airline must consistently place aircraft in the sky to capture that demand. He added that a stable schedule would allow the carrier to lock in longer-term contracts with major logistics providers.
The board has launched a search for a strategic investor and is concentrating on restoring capacity, improving reliability, and steering the company back to financial health; previous attempts at similar deals produced limited results. The carrier is seeking to restore capacity and improve financial health.
A core challenge lies in a cost structure that expands faster than revenue, while the existing fleet cannot fully meet market demand, creating pressure on margins.
Because the carrier is majority-owned by the Kenyan government, the losses affect public finances as well as private shareholders, raising the possibility of additional state bailouts or fresh capital injections. Political scrutiny has intensified, with lawmakers demanding transparent reporting on any future funding requests.
Rising fuel prices and intensified competition from regional and global airlines add further strain, yet addressing the underlying cost and capacity issues is essential for the airline to reverse its trajectory.
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