Kenya’s leading airline Kenya Airways has announced plans to sell majority of its shares to a private investor.
Speaking to the media, the Airline’s CEO Allan Kilavuka said they are seeking to seal a deal with an equity investor before December 2024.
He revealed that numerous investors have expressed interest in purchasing majority of shares at the Kenyan Carrier.
Kilavuka said the move will help Kenya Airways move back to profitability.
“We’re looking for an equity investor that can invest up to a maximum of 49 per cent, that’s the maximum,” Kilavuka said.
The CEO further revealed that the airline anticipates that the investor will be foreign necessitating the curb at 49% to ensure business continuity.
“The reason that is the maximum is because the rules in Kenya don’t allow you to have an AOC or an airline operating certificate if you have more than 50 per cent foreign ownership,” he said.
He explained that the financial investment will help Kenya Airways strengthen its balance sheet through financial restructuring and ensuring that the airline has adequate working capital for quick investment.
Besides, it will also ensure that the airline expands and modernize to remain competitive in the market.
“It’s not a one fits all; some will want more involvement; others will want less involvement. For us the ideal investor would be one that, of course, gives us the financial support we are looking for the capitalization we’re looking for one that would add value particularly technically, and complement our core business,” Kilavuka added.
Also Read: Kenya Airways Temporarily Halts Online Flight Booking
Current Shareholders
Should the private investor buy the shares offered by the airline, the national government will lose its majority shares at Kenya Airways.
This would mean that the new investor automatically becomes the majority shareholder altering the current ownership system.
The national government is the majority shareholder with 48.90% followed by KQ Lenders Company at 38.09 %.
Dutch Airline KLM has 7.76%, KQ Employers have 2.44% while the other seven shareholders own 2.81%.
Also Read: Illustrious Career of Allan Kilavuka, Kenya Airways CEO Saving KQ from Sinking
Kenya Airways 2023 Profit
On March 26, the Airline announced that it recorded an operating profit of Ksh10.5 billion for the year ended December 31, 2023.
This represents a 287% growth compared to an operating loss of Ksh5.6 billion in the previous year.
The Airline’s total revenue increased by 53% to close at Ksh178 billion attributable to a 43% growth in passenger numbers.
Loss after tax also reduced by 41% from Ksh38 billion to Ksh23 billion.
