The Kenyan government has confirmed it will launch an international tender seeking a strategic equity partner for Kenya Airways capable of injecting between €1.11bn and €1.85bn into the carrier. Finance Minister John Mbadi revealed the expression of interest process during a news conference in Nairobi on 11 February. The partner must provide capital alongside operational expertise and best practices in airline management.
The government has assumed and services KES63.1bn (€489m) in Kenya Airways debt, to be converted into equity upon securing the investor. The turnaround plan follows a business assessment reviewing prior reports on operations and finances. Key measures include rationalising the route network, fleet, and resources to position Kenya Airways as a leading pan-African carrier.
The restructuring aims to renegotiate collective bargaining agreements for industry productivity levels while minimising disruption within existing agreements. The revitalised airline would support a potential pan-African alliance with Nairobi Jomo Kenyatta as a regional hub.
John Mbadi shared “We shall be rolling out an international expression of interest to search for a strategic partner. The new investor is expected to inject a minimum of USD1.2bn and up to USD2bn into the business. We are not looking for a strategic partner who will just be bringing money. We want a strategic partner who will bring financial resources, but also is experienced enough, will bring expertise and best practices in the running of this airline.”
