Kenya's Cabinet Approves $350 Million Financing Package for Kenya Airways
Kenya's Cabinet has approved a $350 million shareholder financing package for Kenya Airways, intended to address urgent operational needs including aircraft maintenance and the return to service of grounded aircraft. Announced on 9 October 2026, the funding will be disbursed in tranches under National Treasury oversight, with a repayment period of up to 10 years and the option for conversion into equity, subject to corporate, shareholder and regulatory approvals. The cabinet also endorsed the conversion of KES122 billion ($940.6 million) in existing government loans - plus accrued interest - into an equity-qualifying tradable instrument, a move designed to strengthen the airline's balance sheet and support future capital raising.
The measures form part of Kenya Airways' broader long-term turnaround plan as the carrier seeks at least $1.5 billion in fresh capital from a strategic investor, a process now expected to conclude in the first quarter of 2027. Acting group managing director and CEO Habil Waswani confirmed the financing would address the airline's immediate recapitalisation, liquidity and balance sheet restructuring requirements. Currently, 11 of the airline's 34 aircraft are grounded - including two long-haul Boeing 787-8s - with reactivation targeted for early 2027. Kenya Airways contributes more than $1.3 billion annually to Kenya's GDP through tourism, trade and regional connectivity, and the government's stake in the Nairobi Securities Exchange-listed carrier stands at 50.1 per cent.
Source: ch-aviation