The Kenyan government has approved a $350m loan for Kenya Airways as the national carrier grapples with mounting debts and the cost of returning grounded aircraft to service.
The funding was given the go-ahead by the country’s cabinet on October 9 and is intended to help the airline meet its financial commitments, including outstanding aircraft maintenance costs.
Kenya’s National Treasury will release the money in stages, and the loan is repayable over up to ten years. There is also provision for the loan to be converted into equity, subject to approval.
Ministers have also backed a proposal to restructure approximately KSh122bn ($941m) in existing government loans into an equity-qualifying tradable financial instrument. This would reduce the SkyTeam member’s debt burden and potentially make the airline more attractive to outside investors.
The government, which owns 48.9% of Kenya Airways, has been seeking a strategic investor as part of efforts to put the airline on a more secure financial footing.
However, the carrier has stressed that neither arrangement has been finalised, with negotiations, formal agreements and the necessary shareholder and regulatory approvals still outstanding.
The latest assistance follows another difficult six months for Kenya Airways. Although revenue rose 9% to KSh81bn in the first half of 2026, the airline reported an after-tax loss of KSh16.1bn, up from KSh12.2bn in the same period in 2025.
