Kenya Airways has launched plans to secure at least $500 million in fresh funding by the first quarter of 2026 to expand and restore its aircraft fleet after reporting a significant first-half loss. The carrier aims to bolster capacity and reliability by injecting new capital into maintenance and new asset acquisitions.
In the six months to June, the airline recorded a pretax loss of 12.17 billion Kenyan shillings ($94 million), compared with a profit of 634 million shillings a year earlier. Management attributed the deficit largely to three Boeing 787-8 Dreamliners being sidelined for heavy maintenance, which constrained both revenue and passenger volumes.
Chief Executive Allan Kilavuka told investors that one of the grounded Dreamliners returned to service in July, and the airline is targeting full fleet readiness by early 2026. He stressed that additional funds are crucial to avoid further service interruptions and to support planned capacity growth.
Kilavuka said the carrier will outline its capital-raising structure and obtain shareholder approval for the financing package by March next year. “We’ve set a minimum target of half a billion dollars to address our fleet requirements,” he added, noting that the final amount may exceed this floor depending on market conditions.
After plunging into insolvency in 2018 due to an aggressive expansion drive, Kenya Airways has leaned on state support to stabilize finances. In January, the government repaid a $150 million bank loan on the airline’s behalf, easing the immediate liquidity crunch.
The company closed 2024 with a full-year pretax profit of 5.53 billion shillings, reversing a 22.86 billion-shilling loss in 2023. That turnaround was powered by foreign-exchange gains of 10.55 billion shillings, thanks to a stronger Kenyan shilling against the dollar.
Facing stiff competition from rival Ethiopian Airlines, Kenya Airways has embedded its fleet renewal programme into “Project Kifaru 2,” which focuses on operational efficiency and profitability.
With the financing roadmap set, stakeholders will watch closely for formal debt or equity offers by early 2026. Success in securing the targeted funds should strengthen Kenya Airways’ balance sheet, restore full flight schedules and reinforce its position as one of Africa’s premier airlines.
