Kenya’s national carrier, Kenya Airways (KQ), has announced plans to raise $500 million in fresh capital by the first quarter of 2026 to modernize and expand its fleet.
The move comes after the airline reported a pretax loss of KSh 12.17 billion ($94 million) in H1 2025, a sharp decline from a KSh 634 million profit during the same period in 2024. The downturn was largely attributed to the temporary grounding of three Boeing 787-8 Dreamliners, which reduced operational capacity.
CEO Allan Kilavuka confirmed that the airline has already begun engaging shareholders and financiers to approve the capital sourcing plan. He emphasized that the funds will be used to:
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Restore and expand fleet capacity.
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Invest in fuel-efficient aircraft.
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Strengthen regional and international routes.
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Improve service quality and competitiveness.
Earlier in 2025, the Kenyan government provided a $150 million bailout to help stabilize operations, underscoring the airline’s strategic importance as a regional hub.
Despite the setbacks, Kenya Airways recorded a pretax profit in 2024, driven largely by foreign exchange gains and cost optimization. The new capital raise aims to restore momentum and position the airline for long-term sustainability.
Aviation analysts note that global travel demand is rising, and with the right fleet upgrades, KQ could capitalize on Africa’s growing aviation market.
