The Treasury has gone slow on pushing for a strategic investor for Kenya Airways as it seeks other options beyond an equity deal. Treasury Principal Secretary Chris Kiptoo has confirmed that no investor had been found for KQ, prompting a shift in approach.

KQ has been banking on its top shareholders to back the conversion of the loans to shares in fresh efforts to smoothen the path for entry of a strategic investor.

The State previously abandoned a deal with India’s Adani Group to upgrade JKIA under a public-private partnership.

Kenya Airways, despite reporting a Ksh 5.4 billion profit in 2024, remains burdened by Ksh 206.8 billion in liabilities.

The IMF has pressured the government to inject new capital into KQ to reduce reliance on State bailouts.

Earlier this month, Treasury was forced to pay Ksh 19.3 billion in defaulted KQ loans to banks, as lenders rejected a bond repayment proposal.

KQ is now pushing for debt-to-equity conversions, testing the willingness of banks and the government.

Treasury remains KQ’s largest shareholder with a 48.9% stake.