President William Ruto is pitching to sell a controlling stake in national carrier Kenya Airways to US investors as a path of returning the struggling airline to profitability
On Wednesday Transport Cabinet Secretary Kipchumba Murkomen said the search for strategic partners for Kenya Airways tops the list of Dr Ruto’s mission to America.
Kenya will prefer a cash-rich foreign airline as a strategic investor in a plan that could offer the national carrier aviation expertise and cut its reliance on Treasury for operational cash.
“We are doing everything possible to ensure that we no longer subsidise the airline and that is why we are looking for a strategic partner,” said Mr Murkomen.
“Even on the President’s trip to the US, one of the topics for discussion is how to get a strategic partner for Kenya Airways,” said the CS.
On Kenya Airways, a deal would see the State cut its shareholding from 48.9 per cent and reduce the ownership of lenders who converted their debt to a 38 per cent stake.
Air France-KLM owns a small stake in Kenya Airways and it remains to be seen if the multinational, previously KQ’s anchor shareholder, will sell its remaining 7.76 per cent interest.
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