Kenya Airways set for Sh251bn Middle East buyout
Kenya Airways (KQ), the country’s struggling national carrier, is reportedly set for a high-profile buyout by a Middle Eastern airline in a deal valued at Sh251 billion, The Informer Media Group has established.
The new revelation comes weeks after the Kenya Airways was overhauled and Nairobi Stock Exchange (NSE) chairman Kiprono Kittony was appointed as the board chairman and Preside William Ruto’s advisor David Ndii as a board member weeks before declaring a Sh17billion loss, and recently, acquisition of shares by two Kenyan Members of Parliament (MPs).
According to February 2026 regulatory filings, Kiharu MP Ndindi Nyoro purchased over 10.3 million KQ shares worth about Sh49.2 million, while Thika Town MP Alice Ng’ang’a acquired more than 2.3 million shares valued at approximately Sh11 million. Sources suggest that the timing of the MPs’ share purchases could indicate strategic positioning ahead of the proposed sale.
The government, which remains KQ’s largest shareholder with 48.9 percent, has been seeking a strategic investor to inject up to Sh258 billion in fresh capital to revive the airline, which reported a Sh17.1 billion net loss in 2025. Other major shareholders include ten regional banks (38.1 percent), KLM Royal Dutch Airlines (7.8 percent), employees (2.4 percent), and miscellaneous investors (2.8 percent).
KQ’s management has shifted its approach, now considering a consortium of investors rather than a single strategic partner, reflecting the complexity of the deal. Other recent entrants to the shareholder register include Suods Logistics, Danmill Enterprises, and Primelane Properties, with the latter two registered under Peter Kamau Mwangi, who also holds stakes in HF Group, Kenya Power, KenGen, and the Development Bank of Kenya.
The airline has faced perennial losses partly due to costly aircrafts. In efforts to cut costs, KQ has downsized its fleet from 43 to 41 aircraft over the past nine months, returned leased Embraer 190s, and converted passenger planes into cargo freighters. Leasing renegotiations and operational austerity measures have helped lower expenses, with fleet ownership costs dropping 41 percent from Sh28.57 billion in 2020 to Sh16.63 billion in 2021. Half-year deficits have also reduced from Sh11.48 billion to Sh9.88 billion.
KQ’s recovery has been heavily supported by government bailouts, including assuming $868.7 million of airline debt, with backing from the International Monetary Fund for restructuring discussions.
Sources indicate that the proposed Sh251 billion sale would make Kenya Airways the latest national asset to be privatised, amid growing debate over government divestment of state-owned enterprises such as Safaricom, Kenya Pipeline Company, and East African Portland Cement Company.
The airline, dubbed the “Pride of Africa,” continues to navigate a complex restructuring while seeking to stabilize operations, reduce debt, and attract strategic investment to return to profitability.
Kittony’s appointment as chairman of Kenya Airways (KQ) has sparked debate over potential conflict of interest concerns even as the national carrier undergoes a leadership shake-up aimed at reviving its fortunes.
Kenya Airways announced the appointment of Kittony as chairman and independent non-executive director, replacing Michael Joseph, who stepped down after serving on the airline’s board for close to a decade.
The changes come at a critical time of KQ’s sale plan by the government by scouting for a strategic investor to revive the perennial loss-making national carrier.
Kittony, also currently serves as chairman of the Nairobi Securities Exchange (NSE), where Kenya Airways is listed, a development that has triggered questions from governance observers about the propriety of holding leadership positions in both the stock exchange and a listed company.
Corporate governance commentator Ike Ojuko was among those who raised concerns, arguing that the dual roles could present a conflict of interest.
In a post on the social media platform X, Ojuko questioned whether regulators had adequately examined the implications of the appointment.
He suggested that oversight institutions such as the Capital Markets Authority (CMA) and the National Treasury of Kenya should clarify whether the arrangement complies with corporate governance and market integrity rules.
“Am seeing Kiprono Kittony is the new Chairman of Kenya Airways. Kiprono Kittony is the Chairman of Nairobi Stock Exchange. KQ is a listed company at NSE. One can’t sit in the Board of NSE and be a Board Member of listed company. There is complete conflict of interest. It is worse when the Board Member is a chairman in both places. National Treasury and Capital Markets Authority (CMA) are not doing their work,” Ike Ojuko said through an X post.
Despite the concerns, the airline said the board changes are part of a broader effort to strengthen leadership as the carrier navigates financial recovery and ongoing investor negotiations.
In addition to Kittony, the airline appointed three independent non-executive directors to the board. They include economist David Ndii, corporate executive Chris Diaz, and finance scholar Winnie Iminza Nyamute.
The appointments, which took effect on March 5, 2026, are intended to bolster governance and guide the airline through the next phase of its restructuring strategy.
In a statement issued by Company Secretary Habil Waswani, the airline congratulated the new board members and expressed confidence in their ability to steer the company forward.
