The President of Kenya has taken a decision to sell entire stake of Kenya Airways and form a profitable partnership to keep the airline running. Initially the government was discussing to sell the carrier or nationalise it, but as per the sources the government will move ahead with the sale.
Kenya Airways has been struggling to make profit since almost a decade and has failed to repay its debts. Speaking at the US-Africa Leaders Summit, Kenya's newly elected President, William Ruto confirmed his decision to sell the airline, he said: “I am willing to sell the whole of Kenya Airways.”
Going ahead, Ruto also met with the Executive Vice President of External Affairs at Delta Air Lines, Peter Carter. Although discussions with Delta are at preliminary stage, Ruto refused to comment on anything further. Interestingly, both Kenya Airways and Delta are a part of SkyTeam alliance.
Ruto also mentioned that the Kenyan government is willing to partner with anyone that could increase Kenya Airways' profitability. "Looking for partnerships that will make Kenya Airways a profitable entity whatever that means, in whatever configuration, whatever form it takes. If you have someone who wants to buy the whole airline, please, I'd like to have a conversation with them."
The escalating fuel prices coupled with the COVID-19 pandemic pushed the airline further in debts. In October 2022, the airline defaulted on a loan taken out in 2017 of $841.6 million intended to cover the cost of seven aircraft and one engine. The loan was backed by US Exim Bank, thereby making Kenya Government responsible for repaying $525 million.
The Kenyan government owns 48.9% of the carrier, and the Air France–KLM group, holds a 7.76% stake while a group of lenders control the remaining 38.09%.