Kenya Airways is considering a US$1.5 billion capital raise to support its turnaround strategy, reduce debt and improve liquidity as the airline works to recover from renewed financial pressure.
According to statements attributed to Chairman Kiprono Kittony, the airline is exploring several financing options, including selling a stake, attracting local and international investors, forming strategic partnerships with other carriers and seeking possible government support.
The proposed funding would help Kenya Airways address its debt burden, strengthen cash flow and manage operational challenges linked to aircraft delivery delays, spare parts shortages and grounded aircraft. These issues have affected the airline’s ability to expand capacity and operate efficiently.
The fundraising plan comes after Kenya Airways returned to a loss in 2025 following signs of recovery in 2024. The airline reported a net loss of 17.12 billion Kenyan shillings, equivalent to about US$132.2 million, after recording a net profit of 5.4 billion Kenyan shillings the previous year.
Management has linked the weaker performance to rising operating costs, supply chain disruptions and fuel price volatility caused by geopolitical tensions in the Middle East. Jet fuel expenses now account for around 20% to 30% of the airline’s total operating costs.
If successful, the capital raise could help revive Kenya Airways’ long-term growth plans, including fleet renewal and expansion. The airline aims to grow its fleet to 100 aircraft by 2030, compared with around 30 aircraft currently, through a mix of purchases and leasing agreements.
The proposed funding would be an important step in stabilizing Kenya Airways’ finances, restoring investor confidence and positioning the carrier for future growth in regional and international aviation markets.
