- Kenya Airways faces investor concerns over heavy debt burden impacts equity interest sales.
- KQ management seeks a financial advisor to facilitate investor selection and aims to reduce debt.
- Struggling Kenya Airways’ debt woes pose challenges for potential strategic investors.
The hefty debt burden of Kenya’s national carrier, Kenya Airways has caused concern among potential investors for the projected equity interest sale, making it the largest challenge for the airline in its quest to lure in purchasers.
KQ managers who have made multiple scouting trips to evaluate the appeal of the company’s stock offer in the US, China, and the Middle East informed Parliament that they had some leads but no firm commitments as of yet.
“All the potential investors we spoke to agreed that the fundamentals of the company are very strong. Their concern was on the debt level and that’s why a good strategy would be reducing the company’s debt to get extra funding into the company,” KQ CEO Allan Kilavuka said.