Kenya Airways talking to foreign investors about buying stake in airline

Kenya’s national carrier Kenya Airways (KQ) says it is talking to about 3 or 4 foreign institutional investors about buying a stake in the cash strapped airline.

CEO Mbunzi Nguze in an interview with Reuters said KQ has fantastic business across Africa despite the hurdles it is facing.

He added that the management of the airline was encouraged by the interest the business has received from potential suitors attributing it to Nairobi’s status as a major airport hub in Africa.

According to a plan drawn up with the help of US investment bank PJT Partners, search for a strategic investor is one of the ways to raise new debt and equity funds.

Ngunze did not reveal how much the airline plans to raise from the sale; the company had previously said it would need about $692 million.

The Kenyan government are KQ’s largest shareholders owning 29.8% followed by KLM’s 27%.

Kenya Airways has recorded four consecutive years of losses as a result of a poorly timed expansion strategy.

Already the company has been reducing the size of its fleet, selling assets such as land and downsizing its staff in a bid to turn around is fortunes.