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Kenya’s national carrier, Kenya Airways, is optimistic about securing an equity investor by the year’s end.
Allan Kilavuka, the airline’s CEO, has noted significant interest from potential investors.
In an exclusive interview with a local media, Kilavuka expressed confidence that the infusion of capital could revive the airline’s profitability.
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The potential deal could see the national government relinquish its majority stake of 48%, should the new investor acquire all the shares offered in the recapitalization.
Kilavuka explained that the maximum ownership by a single entity is capped at 49% due to regulatory restrictions in Kenya. This limitation ensures compliance with aviation regulations, as foreign ownership exceeding 50% is prohibited.
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Anticipating a foreign investor, Kilavuka emphasized the necessity of maintaining a 49% cap to ensure operational continuity.
This shift would make the new investor the majority shareholder, altering the current ownership structure, where the government holds 48.90%, followed by other stakeholders.
Kilavuka emphasized the importance of finding an investor who not only provides financial backing but also adds technical expertise and complements the airline’s core operations.
The capital injection aims to strengthen Kenya Airways’ balance sheet, provide working capital for swift investment, and support expansion and modernization efforts to stay competitive.
