Kenya Airways is considering an offer from an undisclosed investor to exchange aircraft for a strategic stake in the national carrier, as it seeks to raise fresh capital. The airline aims to rebuild its fleet and stabilize its balance sheet.
Acting Group Managing Director and CEO Capt. George Kamal said the offer is one of several structures on the table. The airline is weighing whether to issue new shares to a strategic investor or pursue alternative arrangements.
At least four firms, from the United States, China, South Africa, and Singapore, have expressed interest in investing in the carrier. Kiprono Kittony, KQ Chairman, said the airline would run a transparent process given its listing on the Nairobi Securities Exchange.
The push for new capital comes as KQ’s losses widen. The airline reported a net loss of roughly Sh16 billion for the six months to June 2026. Revenue rose 9 percent to Sh81 billion, but operating costs climbed 14 percent to nearly Sh92 billion.
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Grounded wide-body jets have been a central drag on earnings, cutting into KQ’s most lucrative long-haul routes. A Boeing 787-8 rejoined the fleet in mid-July, and a Boeing 777-300ER has since been redelivered, which should help recapture lost capacity in the second half of the year.
Kiprono Kittony stated that the carrier’s priorities are operational stability, tighter cost discipline, reducing leverage, and completing the capital raise. The Treasury has told Parliament the search for a strategic investor is part of a broader recapitalization plan expected to conclude by December.
Whether an aircraft-for-equity deal makes the final agreement remains unclear, with the airline saying all options stay open until a preferred bidder is named. The airline’s debt stands at about Sh152 billion, with roughly 90 percent of it owed to the Kenyan government, which holds just under half of KQ’s shares.
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