Foreign investors targeted for $2B Kenya Airways rescue as Ethiopian Airlines posts $4.4B revenue

Kenya Airways and Ethiopian Airlines are moving in sharply different directions as African aviation faces pressure to demonstrate resilience and scale. In Nairobi, the Kenyan government is preparing to court foreign investors in a deal valued at up to Ksh258 billion ($2 billion) to stabilize Kenya Airways, where the state holds a 48.9 percent stake.

Meanwhile, Ethiopian Airlines, fully owned by the Ethiopian government, reported $4.4 billion in revenue for the first half of its 2026 financial year. When adjusted for inflation, this equates to $4.5 billion, reflecting a 14 percent increase compared with the same period last year and exceeding internal forecasts.

Airline losses drive urgent investment plan

Kenya’s National Treasury plans to issue an international expression of interest to find a strategic investor willing to inject between Ksh154.8 billion ($1.2 billion) and Ksh258 billion ($2 billion). Cabinet Secretary John Mbadi said the government seeks a partner capable of supporting the airline financially and helping restore its balance sheet.

The airline’s financial situation highlights the urgency: as of June 2025, Kenya Airways had liabilities of Ksh309.9 billion ($2.4 billion) against assets of Ksh180.3 billion ($1.4 billion), leaving equity at negative Ksh129.5 billion ($1 billion). For the half-year, it reported a loss of Ksh12.15 billion ($94.2 million).

Officials are exploring ways to make the investment more attractive, including bundling additional assets and converting Ksh63.1 billion ($490 million) assumed under the Tsavo facility into equity. Kenya Airways is also seeking at least Ksh64.5 billion ($500 million) in fresh capital to expand its fleet, a step seen as vital to enhancing its route network and competitiveness.

Cargo transport strengthens Addis Ababa hub

By contrast, Ethiopian Airlines continues to expand. The airline carried 10.64 million passengers in the first half of 2026 and transported 451,000 tonnes of cargo, reinforcing Addis Ababa as a continental logistics hub. Revenue, adjusted for inflation, reached $4.5 billion, up 14 percent from the same period last year and surpassing internal forecasts.

The carrier’s Vision 2035 strategy aims to carry 65 million passengers and move three million tons of cargo annually, targeting $25 billion in revenue. Plans include purchasing nine Boeing 787-9 aircraft for delivery between 2031 and 2033, plus 11 Boeing 737 MAX jets ordered at the Dubai Airshow. Ethiopian Airlines also continues to invest in infrastructure, including the Bishoftu International Mega Airport City project, to strengthen long-term growth.

African aviation stakes clear for investors

The contrast between the two carriers is stark. Kenya Airways is seeking up to $2 billion from foreign investors while managing Ksh309.9 billion ($2.4 billion) in liabilities and negative Ksh129.5 billion ($1 billion) in equity. Ethiopian Airlines, by contrast, is expanding fleet capacity, reporting $4.4 billion in revenue, and pursuing a long-term growth plan with a $25 billion revenue target. For stakeholders, the stakes in African aviation have rarely been clearer.