By In a strategic move to strengthen the national carrier’s turnaround, the Kenya Government has taken majority control of Kenya Airways, raising its stake to 50.1%. The shift follows the exit of the employee share ownership scheme and positions the state to lead restructuring efforts and attract new strategic investors amid ongoing financial pressures.
The increase in ownership gives the National Treasury a controlling position in the national carrier for the first time in recent years.
The shift follows the exit of the airline’s employee share ownership scheme (ESOP), which previously held a minority stake. The reduction in total issued shares effectively raised the government’s ownership without the need for additional share purchases.
With a majority stake, the government is now better positioned to steer the airline’s recovery strategy, including plans to bring in a strategic investor.
Officials are seeking fresh capital and operational partnerships to stabilise the carrier, which has faced prolonged financial challenges and operational constraints.
Financial Pressures
The ownership shift comes as Kenya Airways continues to navigate financial difficulties. Recent reports indicate the airline has returned to losses, driven by reduced capacity, grounded aircraft, and broader operational challenges affecting global aviation supply chains.
The carrier has also experienced declining revenues and passenger numbers, alongside increased pressure on its long-haul operations.
The move signals a renewed effort by the Kenya government to stabilise its flag carrier and reposition it for long-term sustainability.
Industry observers say majority control could accelerate decision-making, particularly in negotiations with potential investors and restructuring initiatives.
The government’s increased stake marks a critical step in Kenya Airways’ recovery journey — placing control firmly in state hands as efforts intensify to secure investment and restore financial stability.
