Kenya Airways (KQ) share price has rallied 69.7 percent in eight trading days amid rumours of ongoing talks with a strategic investor and the creation of a new board seat to represent Kenyan banks in the airline.
The national carrier’s stock closed at Sh5.50 per share on Tuesday, up 9.56 per cent from Sh5.02 on Monday, extending gains since January 15, when it closed at Sh3.24. The eight-day rally has generated paper gains of Sh13.1 billion for shareholders.
The national carrier was the top gainer in Tuesday’s trading on the Nairobi Securities Exchange (NSE).
The gains reflect how the potential capital injection from a new strategic investor and the appointment of veteran banker and public servant Esther Koimett lifted market sentiment and boosted confidence in the company.
A Middle Eastern airline and a Singapore-based firm were reportedly interested in investing in the Kenyan national carrier, though the Singaporean firm later denied the report. Kenya Airways did not confirm or deny the talks with strategic investors.
“Kenya Airways continues to pursue engagements with various stakeholders and potential investors, which are at various stages of conversation,” said Henry Okatch, KQ director of communications.
“As a listed company, we can only make this information available to the public once these discussions are completed and in line with Capital Markets Authority (CMA) regulations through our official channels.”
The government has been trying to sell a stake in the airline for years, but nothing has materialised so far.
The airline reported a negative book value of Sh129.5 billion in the half-year to June 2025, meaning its liabilities exceeded its assets by this amount.
Ms Esther Koimett was appointed to the KQ board on Monday evening, occupying a newly created seat representing KQ Lenders Company 2017 Limited, the entity formed to convert local banks’ Sh17 billion debt into equity.
“Ms Koimett is an accomplished public servant with over 35 years’ experience spanning investment promotion, banking, privatisation, public enterprise reform, and public policy,” the KQ board said in a statement.
“She has played a key role in structuring and executing major strategic transactions and initiatives undertaken by the Government of the Republic of Kenya.”
Koimett previously served on the KQ board representing the government while Principal Secretary for Transport and Director-General for Public Investments and Portfolio Management at the National Treasury.
She was involved in restructuring the KQ balance sheet, which led to the creation of the company she now represents on its board, and in negotiating with aircraft lessors and guarantors to give the airline financial headroom.
Her return, this time representing the banks’ consortium, is seen as a strategic move to give lenders a stronger voice in the company's strategic direction, besides potential transactions involving new strategic investors.
The bank consortium includes Equity Bank, KCB, Co-operative Bank of Kenya, National Bank of Kenya, Diamond Trust Bank, SBM, NCBA, I&M Bank, Kingdom Bank, and Ecobank. Together, the ten banks hold about 38 per cent of the carrier.
The consortium became the largest shareholder after the government, which owns 48.9 per cent. Until Monday, the KQ board had 10 members representing the National Treasury, the State Department for Transport, KLM Royal Dutch Airlines, and other shareholders.
The addition of the lenders’ representative now increases the board to 11 members. The airline issued a profit warning for the year ending December 2025. 513 million a year earlier.
