Kenya’s government is set to launch an international tender for a strategic equity partner for Kenya Airways. It hopes to secure up to $2 billion to turn the national carrier around. Finance Minister, John Mbadi, confirmed the plans during a news conference in Nairobi on Feb. 11, outlining a bold new chapter for the airline often called “The Pride of Africa.”
Strategic Partner Search
Whilst the government seeks investors capable of injecting between $1.2 billion and $2 billion into Kenya Airways, Mbadi stressed that capital alone will not guarantee success. The right investor must also bring experience in running airlines.
Mbadi explained:
“We are not looking for a strategic partner who will just be bringing money,”
“We want a strategic partner who will bring financial resources, but also is experienced enough, will bring expertise and best practices in the running of this airline.”
The government has already taken over and is servicing KES563.1 billion (approximately $489 million) in debt from Kenya Airways. This amount will turn into shares once a new investor joins. This move will clean up the airline’s finances.
Restructuring Blueprint
Kenya Airway has struggled for years. High debt, rising costs, and the pandemic hit the airline hard. The turnaround plan follows a deep dive into previous reports and studies on the airline’s operations and finances. Key elements include rationalising the route network, fleet, and resources to align with Kenya Airways’ ambition of becoming a leading African carrier.
The restructuring also requires renegotiating worker pay deals to meet industry productivity targets. This is an issue that has proven controversial in past turnaround efforts. But Mbadi described the plan as “the least disruptive option,” taking place within existing financial, stock, and lease agreements.
Notably, the vision extends beyond a single airline. The objective is to have Kenya Airways to help form a pan-African group. This would keep its brand alive, whilst supporting the economy, and maintaining Nairobi Jomo Kenyatta as a regional hub.
Financial Context
The search for investment comes as Kenya Airways shows early signs of recovery. In March 2025, the airline reported its first pre-tax profit in over a decade. It recorded 5.53 billion shillings ($42.8 million) for 2024. The year before, it had lost 22.86 billion shillings. Foreign-exchange gains and strengthening of the Kenyan shilling against the dollar drove much of this improvement.
However, the carrier fell into trouble in 2018 following an expansion drive that left it with hundreds of millions of dollars of debt. The collapse of international travel during the COVID-19 pandemic, combined with currency weakness and higher interest rates, made debt servicing increasingly difficult, leading to repeated state financial support.
Will a strategic partner finally unlock Kenya Airways’ potential? Share your thoughts in the comments.
