Kenya's Treasury Takes Majority Stake in Kenya Airways Amid Carrier's Financial Losses
Kenya's National Treasury has increased its shareholding in Kenya Airways (KQ) to 50.1 per cent, securing majority control of the national carrier following the exit of the airline's employee share ownership plan (ESOP). The ESOP's 142.1 million shares - equivalent to a 2.44 per cent stake - were dissolved as part of a capital restructuring, reducing total issued shares from 5.82 billion to 5.68 billion and lifting the Treasury's holding from 48.89 per cent. The majority stake gives the government authority to direct the airline's strategy, including the potential sale of a stake to a new investor and a possible merger with the Kenya Airports Authority (KAA) to consolidate costs and build scale.
The ownership shift comes against a challenging financial backdrop for the carrier. Kenya Airways posted a net loss after tax of KSh17.1 billion in FY2025, reversing a KSh5.4 billion profit recorded in 2024, with total income falling from KSh188.5 billion to KSh161.5 billion. The airline attributed the decline to reduced cargo volumes, a 13 per cent drop in passenger bookings, and an 18 per cent reduction in available seat capacity - compounded by the grounding of at least three Boeing 787 Dreamliner wide-body aircraft for maintenance in December 2025, which cut long-haul capacity by approximately 20 per cent. Despite the losses, the airline confirmed in late March 2026 that all routes and operations across domestic, regional, and international networks would continue without disruption.
Source: The Kenya Times