Kenya Airways to Raise KSh 64.5 Billion to Rebuild Fleet After Sharp Losses
By Chemtai Kirui, NAIROBI,
Kenya Airways plans to raise at least KSh 64.5 billion ($500 million) by early 2026 to restore its fleet and strengthen its financial position, following a sharp return to losses in the first half of 2025, the airline said.
The national carrier reported a KSh 12.17 billion pretax loss for the six months ending June 30, compared to a KSh 634 million profit in the same period in 2024. Revenue fell from KSh 91.5 billion to KSh 74.5 billion, while operating profit swung to a KSh 6.2 billion loss, reflecting a significant setback after a brief recovery in 2024.
The downturn was largely driven by the grounding of three Boeing 787-8 Dreamliners, about a third of the airline’s wide-body fleet, due to global supply chain disruptions and engine availability. One of the planes returned to service in July, with the remaining two expected later this year.
Kenya Airways Group CEO Allan Kilavuka said the airline will seek shareholder approval and identify sources for the planned fundraising by the first quarter of 2026.
“We’ve said the minimum we are gunning for is about half a billion dollars, which we believe will address the fleet expansions that we’re looking for,” Kilavuka told investors.
In its official mid-year report, Kenya Airways highlighted operational resilience despite challenges: passenger volumes dropped 14%, seat capacity declined 16%, and operating costs fell 10%. However, fleet ownership costs rose 29%, driven by asset revaluation and the acquisition of a new Boeing 737 aircraft.
The airline has struggled to regain stability since entering insolvency in 2018, before posting a KSh 5.5 billion pretax profit in 2024, partly aided by foreign exchange gains.
Kilavuka said that the airline’s recovery plan focuses on restoring fleet capacity, improving operational efficiency, and completing the capital raise to reduce debt and bolster liquidity.
Kenya Airways plays a critical role in Kenya’s economy, connecting Nairobi and other major cities to global trade hubs, supporting tourism, business travel, and regional cargo transport.
Analysts say the planned capital raise is crucial not only to restore passenger and cargo capacity but also to safeguard the airline’s long-term competitiveness and regional connectivity, which are vital for trade and tourism growth in Kenya and across East Africa.
The airline also forms part of the government’s broader strategy to maintain a stable national carrier that can compete with foreign airlines in the region, especially as air travel demand continues to recover following the COVID-19 pandemic.
Despite the financial pressures, Kilavuka expressed optimism, citing strong passenger demand for international routes and a recovery in the global aviation market.
“Even in the face of these challenges, Kenya Airways remains committed to connecting Africa to the world. Our recovery plan gives us confidence in our ability to navigate near-term challenges while building a more competitive and sustainable airline,” he said.
