The National Treasury has taken control of a 50.1 percent stake in Kenya Airways, enabling it to direct the national carrier’s strategy.
Additionally, the stake percentage gives the Treasury the power to sell a stake to a new investor and to merge with other aviation assets, such as the Kenya Airports Authority (KAA), to share costs and build scale.
Speaking to the Business Daily, the airline stated that its shares were sold in the open market.
“KQ Lenders are trading in the open market in the Nairobi Securities Exchange within pre-sanctioned (pre-approved) thresholds,” the airline said.
The acquisition of the stake in Kenya Airways followed the employee share ownership scheme (ESOP) exit, reducing the total number of shares and boosting existing holdings without any new purchases.
The exit of the ESOP, which held 142.1 million shares, equivalent to a 2.44 percent stake, reduced the volume of the airline’s issued shares from 5.82 billion to 5.68 billion, allowing the lifting of ownership by the Treasury and other investors who did not trade their holdings.
Regulatory filings in February indicated that the government’s share had increased to 50.1 percent from the previous 48.89 percent.
While the Treasury’s ownership increased, Kenyan banks, through their investment vehicle KQ Lenders Company 2017 Limited, reduced from 38.09 percent to 37.2 percent in February.
KCB and Equity cut their holdings by 104.4 million shares to 2.11 billion shares, while still holding their second position in the carrier’s shareholder list.
The trustee of the scheme was allocated 142.1 million shares as part of the company’s capital restructuring in 2017.
Kenya Airways’ latest available annual report indicates that the shares held by the scheme had not been issued to employees at the end of December 2024.
Kenya Airways Net Loss
In an official announcement on March 24, 2026, the national carrier posted a net loss after tax of Ksh17.1 billion in FY2025, compared to a net profit of Ksh5.4 billion in 2024.
According to the announcement, the total income reduced from Ksh 188.5 billion to Ksh 161.5 billion due to reduced cargo volumes and flight activities.
In addition, the airline sales declined by Sh27 billion to Sh161.4 billion, resulting in an operating loss of Sh5.6 billion.
Operating costs fell by Sh4.79 billion to Sh167 billion, giving the airline a negative asset position of Sh132 billion, down from Sh118.2 billion.
Further, the airline explained that in December 2025, at least three of KQ’s wide-body Boeing 787 Dreamliner aircraft were grounded for maintenance.
Also Read: Comparing Kenya Airways Tickets with Regional Airlines; Is KQ Too Expensive?
The grounding of the aircraft resulted in a reduction of the airline’s long-haul capacity by about 20 percent and schedule disruptions.
“We had several fleet grounded in 2025, especially our wide-body aircraft, and these are the money makers in the industry,” chief financial officer Mary Mwenga said.
Cargo volumes in the review period stood at 64,780 tonnes, down from 70,776 tonnes according to the airline.
March 24 reports by the airline also indicated that the company had experienced a 13 percent decline in passenger bookings and an 18 percent reduction in available seat capacity.
However, an industry forecast by Kenya Airways showed that Africa’s airlines are expected to earn just about $1.30 (Ksh167.7) in net profit per passenger in 2026, compared with nearly $10 (Ksh1,290) in Europe and North America and close to $29 (Ksh3,741) in the Middle East.
Also Read: Kenya Airways Confirms Operational Stability After Reporting 17 Billion Loss
KQ Operations after Loss
In a statement dated March 30, 2026, the national carrier clarified the its airline operations would continue.
Passengers were urged to continue booking the airline as all valid tickets were fully honored.
The airline also noted that the company’s activities would not be affected by the financial losses.
Services across its domestic, regional, and international routes continued without disruption.
Shares Sales by KQ Lenders
- Suods Logistics- 21 million.
- Danmill Enterprises -14.5 million.
- Kiharu MP Ndindi Nyoro -10.3 million.
- Primelane Properties -8.3 million.
