The government has unveiled plans to bring in a foreign strategic investor for Kenya Airways (KQ) in a deal valued at up to Sh258 billion ($2 billion), as part of efforts to stabilise and revive the national carrier.

An international Expression of Interest (EOI) is set to be floated to attract a partner willing to inject between Sh154.8 billion ($1.2 billion) and Sh258 billion into the airline.

The move signals a shift towards reducing KQ’s dependence on public funding while positioning the carrier for long-term financial sustainability.

As part of the restructuring plan, the government has already taken over Sh63.1 billion of the airline’s debt, which will later be converted into equity once a strategic investor is secured.

The incoming partner will not only provide capital but is also expected to bring global aviation expertise, operational efficiency and airline management experience to strengthen KQ’s competitiveness.

Kenya Airways continues to grapple with financial strain. As of June 2025, the airline reported liabilities of Sh309.9 billion against assets worth Sh180.3 billion, underscoring its balance sheet pressures.

In addition, KQ is seeking at least Sh64.5 billion in fresh capital to support fleet expansion and modernisation.

Under regulatory requirements, foreign ownership of the airline cannot exceed 50 percent. The government is therefore seeking an equity investor willing to acquire up to a 49 percent stake.

The proposed deal marks one of the most significant restructuring efforts in KQ’s recent history as authorities seek to return the national carrier to profitability and restore investor confidence.