• Kenya plans to attract $1.2–2bn investor for Kenya Airways
• KQ posted first operating profit in 11 years in March 2025
• Government aims to reduce fiscal burden from loss-making entities

Kenya’s National Treasury is preparing an international expression of interest to attract an investor willing to inject between $1.2 billion and $2 billion into Kenya Airways (KQ), according to several local media reports. The move marks another attempt by authorities to stabilize the national carrier after more than a decade of financial turbulence.

The planned capital injection aims to strengthen the airline’s balance sheet and support what is described as its most ambitious transformation plan in decades. The objective is to improve competitiveness against major African carriers in both long-haul and regional markets.

After more than ten years of chronic losses, Kenya Airways reported its first operating profit in 11 years in March 2025. Although still fragile, the result is viewed as a positive signal in a context of rising regional competition and tight financing conditions.

The search for an investor comes as the government seeks to reduce its exposure to financially distressed entities whose operations depend on repeated public bailouts, a model considered increasingly unsustainable for public finances.

The success of the planned operation remains uncertain. Growth in African air transport continues to face structural constraints, including fuel cost volatility and shortages of spare parts. Investors are also closely watching the long-term viability of business models and the stability of the regulatory environment.

Henoc Dossa