Kenya’s Cabinet has approved $350 million in shareholder financing for Kenya Airways to help the loss-making national carrier meet urgent financial obligations as it seeks strategic investors and works to restructure its balance sheet.
The approval was announced by President William Ruto’s office on Friday, October 9, 2026.
The Kenyan government, the airline’s largest shareholder, is seeking to stabilise the carrier’s finances while it pursues fresh capital to support its restructuring efforts.
The financing will be released in batches under the supervision of the Ministry of Finance, with a repayment period of up to 10 years. The arrangement also allows for the possibility of converting the funding into equity, subject to the necessary approvals.
Kenya Airways Moves to Restructure Debt
Alongside the new financing, the Cabinet endorsed a proposal to convert 122 billion Kenyan shillings, equivalent to approximately $941 million, in government loans to Kenya Airways into an equity-qualifying tradable instrument.
The proposal forms part of broader efforts to address the airline’s debt burden and strengthen its balance sheet.
Kenya Airways has previously indicated that its restructuring plan includes the possible conversion into equity of principal debt owed to the Kenyan government and a consortium of local banks.
The proposed changes could help ease the airline’s debt obligations while providing a framework for improving its financial position as it seeks strategic investors.
However, the proposed debt conversion remains subject to the relevant approvals.
Kenya Airways Losses
Kenya Airways continues to face financial pressure as it pursues a turnaround strategy. The carrier reported a pretax loss of 15.92 billion Kenyan shillings in the first half of 2026, underscoring the challenges facing its restructuring programme.
The latest government intervention comes as the airline seeks additional capital and considers changes to its financing structure to support its operations and longer-term recovery.
The $350 million shareholder financing is intended to address immediate financial obligations, while the proposed conversion of government loans could form part of a broader effort to reshape the airline’s balance sheet.
