Nairobi — Kenya Airways has identified a planned capital raise of up to US$2 billion as a key priority as the airline continues to face debt obligations, liquidity pressures and operational challenges linked to aircraft shortages.
The disclosure, contained in the airline’s 2025 annual report, comes as Kenya Airways classifies financial and liquidity risk among its most significant business challenges.
The airline said its ability to meet financial obligations remains under pressure due to aircraft-on-ground (AOG) constraints arising from engine maintenance requirements, which have reduced fleet availability and increased operating costs.
Kenya Airways said the proposed capital raise, expected to run through 2029, is aimed at strengthening its balance sheet and improving liquidity.
The exercise remains under implementation and is expected to involve government support, strategic investors and structured financing arrangements.
The report lists financial and liquidity risk as having increased during the year, noting that continued fleet constraints and debt-servicing requirements remain a concern despite financing measures introduced to support operations.
The airline also highlighted fuel price volatility as a major risk, noting that aviation fuel accounts for roughly 20–30 percent of total operating costs.
Other risks identified include competition, global supply chain disruptions, shortages of aircraft parts and engines, geopolitical tensions and fraud.
Aircraft and engine shortages continue to affect airlines globally, resulting in longer maintenance turnaround times and reduced fleet availability.
Kenya Airways said these disruptions have been exacerbated by delays in receiving new aircraft and spare parts.
The disclosures underscore the scale of the challenges facing the carrier as it seeks to stabilise its finances after years of losses, restructuring efforts and reliance on state support. While passenger demand has improved since the pandemic, the airline’s latest report suggests that addressing its capital and debt position remains a central challenge.
