The search for strategic investors for Kenya Airways topped the agenda of Kenyan President William Ruto while attending the US-Africa Leaders Summit in Washington DC on December 13 to 15, 2022, according to Kenya’s Transport Cabinet Secretary Kipchumba Murkomen.
As US President Joe Biden hosted leaders from across the continent, Ruto made a pitch for a cash-rich strategic investor to inject capital and offer management expertise and so remove the burden of supporting struggling Kenya Airways from the national fiscus.
“We are doing everything possible to ensure that we no longer subsidise the airline and that is why we are looking for a strategic partner,” Murkomen was cited as saying by The East African newspaper. “Even on the president’s trip to the US, one of the topics for discussion is how to get a strategic partner for Kenya Airways.”
Should Ruto secure a deal, the Kenyan government would be prepared to reduce its shareholding from 48.9% and a lenders’ stake to 38%. The move would see Air France-KLM, which holds 7.76%, joined by other multinationals.
Selling a majority stake in Kenya Airways would require regulatory change. Kenya’s Civil Aviation Act (2013) and Civil Aviation (Licensing of Air Services) Regulations (2018) require Kenyan licence holders to issue at least 51% of their shares to Kenyans.
Kenya Airways Chief Executive Officer Allan Kilavuka was not immediately available for comment.
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