The National Treasury has acquired a 50.1% controlling stake in Kenya Airways, giving it authority over the airline’s strategic direction.
This majority ownership also allows the government to bring in new investors and potentially combine operations with other aviation entities like the Kenya Airports Authority to cut costs and expand capacity.
According to the airline, shares have been actively traded on the Nairobi Securities Exchange within approved limits.
The Treasury’s increased stake resulted from the exit of the employee share ownership scheme (ESOP), rather than new share purchases. The ESOP, which held 142.1 million shares (2.44%), exited, reducing total shares from 5.82 billion to 5.68 billion. This effectively raised the ownership percentages of remaining shareholders, including the government.
By February, regulatory filings showed the government’s stake had risen from 48.89% to 50.1%.
Meanwhile, Kenyan banks, through KQ Lenders Company 2017 Limited, reduced their stake from 38.09% to 37.2%. Major lenders such as KCB and Equity lowered their holdings by 104.4 million shares but remained the second-largest shareholders.
The ESOP shares had originally been allocated during the airline’s 2017 restructuring, but as of December 2024, they had not yet been distributed to employees.
Financial Performance
Kenya Airways reported a net loss of Ksh17.1 billion for the financial year ending 2025, a sharp decline from a Ksh5.4 billion profit in 2024.
Total revenue dropped from Ksh188.5 billion to Ksh161.5 billion, largely due to reduced cargo volumes and fewer flights. Sales also fell by Ksh27 billion, leading to an operating loss of Ksh5.6 billion.
Although operating costs decreased slightly, the airline’s financial position worsened, with negative equity reaching Ksh132 billion.
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Operational challenges contributed to the losses, including the grounding of at least three Boeing 787 Dreamliner aircraft in December 2025. This reduced long-haul capacity by about 20% and disrupted flight schedules.
Cargo volumes declined to 64,780 tonnes, while passenger bookings dropped by 13% and seat capacity fell by 18%.
Industry projections indicate that African airlines are expected to earn only about $1.30 profit per passenger in 2026, significantly lower than other regions.
Operations and Outlook
Despite the losses, Kenya Airways assured customers that its operations remain stable. All booked tickets will be honored, and flights across domestic, regional, and international routes continue as scheduled.
Share Sales
Some stakeholders offloaded shares, including:
- Suods Logistics (21 million shares)
- Danmill Enterprises (14.5 million)
- Ndindi Nyoro (10.3 million)
- Primelane Properties (8.3 million)
