Kenya is moving to bring a strategic equity partner into Kenya Airways PLC by December, accelerating plans to inject fresh capital into the loss-making carrier and ease pressure on public finances.

The National Treasury confirmed the search in a brief to lawmakers, answering calls from the National Assembly’s Public Accounts Committee to deliver a clear debt management plan and an exit route for the state. Lawmakers adopted the oversight report in March.

“Kenya Airways and the government as the majority shareholder are actively seeking to raise capital through a strategic investor to help stabilize and grow its operations and as a turnaround strategy for the airline,” the Treasury told parliament. “This process is currently ongoing and is targeted to be finalized by December 2026.”

Kenya moves up airline sale timeline

The revised timetable moves up the airline’s original schedule. In June, management said it wanted to raise at least $1.5 billion through an international tender, targeting a deal close in the first quarter of 2027.

The state owns a 48.9 percent stake in the airline, known locally as “The Pride of Africa,” and intends to back the equity raise to reassure bidding groups. Both Parliament and the International Monetary Fund have repeatedly criticized persistent taxpayer bailouts, warning that the airline poses a major fiscal headache for Nairobi.

The IMF has pressed the government to bring in outside money, put the carrier on stable financial footing, and scale back sovereign exposure. To draw bidders, the Treasury noted in February that it was open to packaging additional state aviation assets alongside a stake in the carrier, eyeing a deal value of roughly $2 billion.

Spare-part delays ground three Dreamliners

Kenya Airways swung back into the red last year, posting a 2025 net loss of $132.3 million after recording a $41.9 million profit in 2024. Severe global spare-part delays forced the carrier to temporarily park three of its Boeing 787-8 Dreamliners, cutting seat capacity on core routes and eroding passenger revenue.

The operational snags worsened a severe balance sheet mismatch. While total assets stood at Ksh183.2 billion ($1.41 billion), total liabilities climbed to Ksh315.3 billion ($2.43 billion). The shortfall pushed negative equity out to Ksh132.06 billion ($1.02 billion). Treasury officials told lawmakers that the government will cover essential short-term obligations through 2026 while talks proceed, but direct state cash bailouts will end once an investor takes a stake.