Nairobi — Kenya Airways is pursuing a major restructuring plan aimed at reviving its operations, with the Kenyan government seeking to mobilize between $1.2 billion and $2 billion through an international tender for a strategic investor, according to official statements by Finance Minister John Mbadi.
The plan includes converting approximately $489 million of debt into equity, a move designed to strengthen the airline’s balance sheet and restore investor confidence after years of financial losses.
Despite ongoing operational challenges, including aircraft shortages linked to supply chain disruptions, the airline has recently seen improved passenger traffic and cargo volumes, partly benefiting from disruptions affecting major Middle Eastern aviation hubs.
Industry experts, including the African Airlines Association, note that such shifts can temporarily boost African carriers with hub capabilities, including Kenya Airways.
The recovery strategy aims to reposition the airline as a regional aviation hub connecting Africa with Europe and Asia, although analysts caution that long-term success will depend on securing a strong strategic partner and addressing structural challenges such as high operating costs and fleet modernization.
