Kenya’s national carrier, Kenya Airways, requires over KSh 197 billion to complete its restructuring process. Kenya Airways Managing Director and CEO Allan Kilavuka speaking at a past event. KQ posted a net loss of KSh 23 billion for the financial year ending December 31, 2023. This represented a 41% drop from KSh 38 billion reported during a similar period in 2022.How KQ will use money from strategic partner The airline attributed the decrease in loss to the ongoing restructuring process, which the CEO Allan Kilavuka said would cost $1.5 billion (KSh 167.5 billion, based on the current exchange rate). “If we are able to raise capital, that will make us positive from an equity perspective (right now we have negative equity) it should be around $1.5 billion (KSh 197.5),” said Kilavuka while speaking to CGTN. Kilavuka noted that the money will be significant in growing the airline and clearing its debts. Why government stop funding KQ Kilavuka revealed that the state stopped financing the carrier because of the Treasury’s stretched fiscal position, forcing the company to shop for a strategic investor who will complement the airline. “We are looking for an airline that will complement us and understand the industry well. We have no specific range of origin but were are looking at a wide range of them,” he explained. The CEO noted that the airline has no specific preferences at the moment but is looking at a partner that will work with them in tandem.
by Wycliffe Musalia