KQ eyes Sh194bn capital by March as grounded planes hit operations Kenya Airways is seeking to raise about $1.5 billion (Sh194 billion) in fresh capital from investors to expand its fleet, growing its cargo business and restore long-term profitability. The airline's board says the capital raising programme will be pursued through an open process and could involve a mix of equity, debt, a strategic airline partner or financial investors, with the exercise targeted for completion by the first quarter of 2027.
The fundraising plan emerged as the national carrier reported a net loss of Sh17.2 billion for the financial year ended December 2025, a performance management attributed largely to rising fuel costs, geopolitical disruptions and global aviation supply chain constraints.
Kenya Airways chairman Kiprono Kittony said fresh capital was critical if the carrier was to execute its growth plans and remain competitive in a rapidly evolving aviation market. "The amount of money we think that the airline requires for it to really be able to capture the imagination of the future consumer is in the region of $1.5 billion (Sh194 billion) as we have said initially aviation is not a cheap industry " said Kittony.
The chairman said the board had completed a review of the airline's strategy and was satisfied that the plan was fit for purpose, with a strong focus on strengthening Kenya Airways' position as a leading African carrier. He said the company would shortly issue an Information Memorandum to potential investors before determining the most appropriate funding structure.
"The idea is that we would like to run an open and transparent process. There are all these considerations to take. Is it going to be equity? Is it debt? Is it going to be an airline strategic partner? Is it going to be a financial partner? Will it be local funding?
Will it be foreign funding?" said Kittony. " The fundraising comes as Kenya Airways pursues an aggressive expansion strategy despite current financial pressures. Management outlined plans to significantly grow the airline's cargo business, targeting an increase in market share from the current 11-12 percent to about 40 percent by the end of the year.
The carrier is also planning to increase capacity and acquire additional aircraft over the coming decade.