Kenya seeks to sell KQ to foreign strategic investor
A Kenya Airways liner in flight.
The Treasury will seek a foreign strategic investor to buy a controlling stake in Kenya Airways as a path of returning the national carrier to profitability.
Treasury Principal Secretary nominee Chris Kiptoo told MPs the government will push for a fresh equity investor who is expected to inject capital and offer management expertise in the next step of restructuring.
If the sale goes through, it will see the State reduce its shareholding from 48.9 percent and cut the ownership of lenders who converted their debt to a 38 percent 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 percent stake.
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 the State for operational cash.
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