Kenya Airways, the country’s national carrier, is hopeful to secure a deal with an equity investor by the year’s end. CEO Allan Kilavuka revealed that several investors have shown keen interest in the Kenyan airline.
In an exclusive interview with Citizen TV, Kilavuka expressed optimism that the infusion of capital from the investor could significantly improve the airline’s financial performance.
The potential deal could lead to a shift in ownership, with the national government possibly losing its majority stake of 48 percent if the new investor acquires all shares offered in the recapitalization plan.
“We’re looking for an equity investor that can invest up to a maximum of 49 percent…that’s the maximum,” Kilavuka stated. He explained that Kenyan regulations restrict foreign ownership to less than 50 percent to maintain the airline operating certificate.
Kilavuka also noted that they anticipate the investor to be foreign, hence the need to cap ownership at 49 percent for business continuity.
If the deal goes through, the new investor would become the majority shareholder, changing the current ownership structure.
Presently, the government holds 48.90 percent, followed by KQ Lenders Company 2017 Limited at 38.09 percent, Dutch airline KLM at 7.76 percent, Kenya Airways employees at 2.44 percent, and the remaining shares dispersed among seven other shareholders.
