Kenya Airways has announced plans to secure at least $500 million by early 2026 to finance fleet expansion and modernization, in a move aimed at restoring capacity and boosting competitiveness. Chief Executive Allan Kilavuka explained at an investor briefing that the airline expects to finalize the fundraising structure and obtain shareholder approval within the first quarter of next year, Reuters reported.
The strategy comes on the back of a pretax loss of 12.17 billion Kenyan shillings ($94 million) in the first half of 2025, reversing a profit of 634 million shillings recorded during the same period a year earlier. The airline linked the downturn to the grounding of three Boeing 787-8 Dreamliners for maintenance, though one aircraft has since returned to service, the outlet noted.
Despite the latest setback, Kenya Airways achieved a full-year pretax profit of 5.53 billion shillings in 2024, aided by foreign exchange gains as the Kenyan shilling appreciated. The company views the proposed capital raise as a necessary step to strengthen its balance sheet and sustain operational growth, as highlighted in the same report.
Analysts suggest that a successful capital injection could not only enhance fleet reliability but also position the airline for route expansion, while reducing reliance on state support that has historically underpinned its survival.
