Kenya Airways (KQ) requires approximately $1.5 billion (about Ksh194 billion) in fresh capital to fund its long-term turnaround strategy, Board Chairman Kiprono Kittony has said.
Speaking during the airline’s 50th Annual General Meeting on Friday, Kittony said the capital injection will position the national carrier to compete effectively in the evolving global aviation market and support its growth ambitions over the next decade.
“The amount of money we think that the airline will require for it to really be able to capture the imagination of the future consumer is about $1.5 billion. Aviation is not a cheap industry, so we are looking at about $1.5 billion in new capital,” said Kittony.
“We must either evolve or we will not see the light of day, but the turnaround work is well in progress,” he added.
The airline plans to release an Investment Memorandum (IM) as it explores various funding options, including equity financing, strategic airline partnerships and financial investors from both local and international markets.
Kittony said the board is evaluating the most appropriate financing structure and expects to conclude the exercise by the first quarter of next year.
“We intend to run an open and transparent IM. We as a board will sit down to determine what sort of capital we should be looking at. Is it going to be equity, debt, an airline strategic partner or a financial partner?” he said.
The chairman expressed confidence that Kenya’s capital markets can support the fundraising effort, noting that the airline’s ownership structure remains largely local, with the government holding just under 50 per cent and a consortium of Kenyan banks owning about 38 per cent.
KQ targets 100-aircraft fleet by 2035
Acting Managing Director and Chief Executive Officer Captain George Kamal said Kenya Airways is targeting a fleet of 60 aircraft by 2030 and 100 aircraft by 2035 through a combination of owned and leased planes.
However, the airline has temporarily slowed its fleet acquisition programme after rising geopolitical tensions and fuel prices increased uncertainty in the aviation sector.
“We had a very robust plan in place. This year in February we slowed down once we saw the geopolitical issues and the prices of fuel increasing, which might impact us significantly. We moved the plan to 2027,” Kamal said.
As part of its operational recovery efforts, the airline expects several grounded aircraft to return to service in the coming months.
Kamal said three Embraer aircraft and two Boeing 787 Dreamliners are currently grounded while awaiting engines, while another Dreamliner is undergoing a heavy maintenance check in Kenya for the first time.
The airline expects a number of its grounded aircraft to return to service between July and August, boosting capacity during the peak travel season.
In addition, a 400-seat Boeing 777 is set to rejoin the fleet in July and will initially operate on the London route during the busy summer travel season.
Plans are also underway to install Wi-Fi across the fleet and refurbish aircraft cabins to improve competitiveness and enhance customer experience.
Despite a Ksh17.2 billion loss for 2025, management said the airline’s core business remains viable, citing soaring fuel costs as the main factor behind declining profitability and rising operating expenses.
According to Kamal, fuel now accounts for between 51 and 52 per cent of flight operating costs in Africa, up from about 40 per cent previously, largely due to higher fuel prices and levies.
The airline is also reviewing underperforming routes and strengthening cost optimisation measures as it works towards restoring profitability.
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