NAIROBI, Kenya — The National Treasury has taken majority control of Kenya Airways after its stake rose to 50.1 percent following the exit of a workers’ share scheme, strengthening the government’s influence over the airline’s strategic direction.
Regulatory filings show the Treasury’s shareholding increased from 48.89 percent to 50.1 percent without purchasing additional shares, effectively handing the State a controlling interest in the national carrier.
The shift comes after shares previously held under an employee scheme were removed from the register, allowing the government’s ownership to cross the 50 percent threshold.
The airline’s latest disclosures indicated the shares had not been issued to employees as of December 2024.
With the controlling stake, the Treasury now gains greater leverage in shaping Kenya Airways’ recovery strategy, including negotiations with potential strategic investors and restructuring plans aimed at stabilising the loss-making carrier.
The development marks a significant step in the government’s long-running involvement in the airline, which has relied on State backing amid persistent financial pressures and restructuring efforts.
The move also comes as authorities explore options to attract a strategic investor and potentially restructure the airline’s balance sheet to improve long-term sustainability.
Government backing has previously been seen as critical in keeping the carrier operational during periods of heavy losses and debt restructuring.
Kenya Airways, once listed on the Nairobi Securities Exchange before trading was suspended, has undergone multiple restructuring efforts over the past decade, including debt conversions, workforce adjustments, and capital injections.
Treasury’s majority control is expected to shape upcoming decisions on capital restructuring, investor entry, and operational reforms as the airline seeks to return to sustained profitability.
