Kenya Airways is racing to secure at least $500 million (Ksh64.5 billion) in fresh capital by early next year, as it battles a turbulent first half marked by losses and grounded aircraft.
The national carrier, ranked among Africa’s top three airlines, on Tuesday disclosed that it had sunk to a Sh12.17 billion pretax loss in the first half of 2025 a sharp reversal from the Sh634 million profit it posted in the same period last year. The airline blamed the dip on reduced passenger numbers and revenue, following the temporary grounding of three Boeing 787-8 Dreamliners for maintenance.
One aircraft is already back in service, and CEO Allan Kilavuka said the airline expects to have its full fleet operational by 2026. “We’ve said the minimum we are gunning for is about half a billion dollars. That will address the fleet expansions that we’re looking for,” Kilavuka told investors, adding that a financing plan and shareholder approval will be in place within the first quarter of next year.
The grim results come only months after Kenya Airways posted its first half-year profit in more than a decade, in 2024. That momentum has now been disrupted: operating results show a Sh6.2 billion loss compared to a Sh1.3 billion profit a year earlier, while revenues shrank to Sh74.5 billion from Sh91.5 billion.
The airline’s volatile financial trajectory underscores its long struggle with debt and liquidity. Kenya Airways slipped into insolvency in 2018 after an ambitious expansion left it with unsustainable debt. Since then, it has relied heavily on government bailouts, including a $150 million loan repayment made by the state in January.
Still, last year offered a glimmer of recovery: the carrier ended 2024 with a Sh5.53 billion pretax profit, aided largely by foreign-exchange gains of Sh10.55 billion, after the Kenyan shilling gained over 20% against the US dollar. That turnaround had briefly raised hopes of a sustainable rebound.
With the latest loss, however, the airline’s future hinges on whether it can attract new capital, fix its fleet gaps, and win back passengers without leaning too heavily on state lifelines.
