Kenya Airways (KQ) has announced plans to raise at least $500 million (Ksh.64.5 billion) in additional capital by the first quarter of next year, as part of an ambitious drive to expand and modernize its fleet. The move comes after the national carrier reported a pretax loss of Ksh.12.17 billion ($94.3 million) in the first half of 2025, a sharp reversal from a profit of Ksh.634 million in the same period last year.
The airline attributed the downturn to reduced passenger numbers and revenue after three of its Boeing 787-8 Dreamliners were grounded for maintenance. CEO Allan Kilavuka noted that one aircraft resumed service in July, with the remainder expected back in operation by next year, restoring the airline’s capacity.
“We’ve said the minimum that we are gunning for is about half a billion dollars, which we believe is a minimum. That will address the fleet expansions that we’re looking for,” Kilavuka told investors during a briefing. He added that the airline will seek shareholder approval and finalize the fundraising structure within the first three months of 2026.
Kenya Airways’ operating performance also dipped, posting a half-year operating loss of Ksh.6.2 billion compared to a Ksh.1.3 billion profit in the first half of 2024. Revenue fell 19% to Ksh.74.5 billion from Ksh.91.5 billion last year.
The loss comes after a promising 2024, when KQ delivered its first full-year pretax profit in over a decade, recording Ksh.5.53 billion compared to a Ksh.22.86 billion loss in 2023. Much of that improvement was driven by foreign exchange gains of Ksh.10.55 billion, aided by a strong shilling, which appreciated by more than 20% against the US dollar.
Kenya Airways has faced a turbulent financial journey in recent years, entering insolvency in 2018 after an aggressive expansion left it burdened with heavy debt. The government has repeatedly stepped in, including settling a $150 million commercial bank loan in January 2025.
As the airline eyes new capital to strengthen its fleet and recover from the recent setback, stakeholders will be watching closely to see if this fresh injection marks a turning point in KQ’s long fight for financial stability.
