Kenya Moves to Attract Foreign Investors for Kenya Airways in Ambitious KSh 258 Billion Rescue and Turnaround Plan

The Kenyan government is seeking foreign investors to rescue Kenya Airways (KQ). The plan could bring in up to KSh 258 billion. Officials say this is part of a major turnaround strategy for the struggling airline.

Treasury Cabinet Secretary John Mbadi confirmed that an international expression of interest will be floated. The government wants a strategic partner to inject between KSh 154.8 billion and KSh 258 billion. The partner will bring both capital and aviation expertise. Operational discipline is also expected.

Kenya Airways has faced mounting financial pressure. After posting a rare profit in 2024, it returned to losses in 2025. Heavy debt and operational challenges continue to weigh on the airline. The government has already assumed about KSh 63.1 billion of KQ’s liabilities. Part of this may be converted into equity to make the airline more attractive to investors.

Officials say the aim is to secure a long-term partner. One who can stabilise operations and reduce costs. The government wants to limit reliance on taxpayer bailouts. KQ’s status as the national carrier will remain. Jomo Kenyatta International Airport will continue to serve as its hub.

If the plan succeeds, it will be one of the largest restructurings in the airline’s history. Private-sector participation could bring efficiency and innovation. Analysts say it may also restore confidence among customers and investors.

The expression of interest is expected to attract airlines, investment funds, and aviation stakeholders. They will submit proposals showing how they can improve KQ’s operations.

For the government, the move is more than saving an airline. It is about protecting jobs, safeguarding a national asset, and maintaining Kenya’s regional and international connectivity.

The next few months will be critical. Investors, regulators, and KQ management will determine the airline’s future. Many Kenyans hope the flag carrier will not only survive but soar again.