NAIROBI, April 6 – Kenya’s National Treasury has secured a controlling 50.1% stake in Kenya Airways, marking a shift in ownership that gives the government greater influence over the airline’s future direction.
Regulatory filings show the Treasury’s stake rose from 48.89% to 50.1% following the exit of the employee share ownership scheme (ESOP). The scheme held 142.1 million shares, equivalent to a 2.44% stake.
Its exit reduced the airline’s total issued shares from 5.82 billion to 5.68 billion, effectively increasing the holdings of existing shareholders without additional purchases.
The new structure allows the government to explore options such as bringing in strategic investors or merging the airline with other aviation assets, including the Kenya Airports Authority, to improve efficiency and reduce costs.
At the same time, Kenyan banks, through KQ Lenders Company 2017 Limited, trimmed their stake slightly from 38.09% to 37.2%. KCB and Equity collectively reduced their holdings by 104.4 million shares, although they remain the second-largest shareholders.
The ownership changes come as the airline faces renewed financial pressure. Kenya Airways reported a net loss of Ksh17.1 billion for the 2025 financial year, reversing a Ksh5.4 billion profit recorded in 2024. Total income fell to Ksh161.5 billion from Ksh188.5 billion, weighed down by lower cargo volumes and reduced flight activity.
Passenger bookings dropped by 13%, while available seat capacity declined by 18%. The airline also faced operational challenges, including the grounding of at least three Boeing 787 Dreamliner aircraft, which cut long-haul capacity by about 20%.
Despite the losses, the airline said operations across its domestic, regional and international routes remain unaffected, with all valid tickets continuing to be honoured.
