“We’ve no preferences”: KQ seeks KSh 167b support from strategic investor

• The Kenyan government stopped its support for Kenya Airways, announcing plans to seek a strategic partner for national carrier
• The airline posted a 41% drop in net loss to KSh 23 billion for the financial year ending December 31, 2023
• KQ Managing Director and CEO Allan Kilavuka revealed that the airline requires KSh 197.5 billion for the full restructuring process

TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

Kenya’s national carrier, Kenya Airways, requires over KSh 197 billion to complete its restructuring process.

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.

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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 would 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 would complement the airline.

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“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.

What to know about KQ strategic partner

Source: TUKO.co.ke