Kenya Airways has slipped into loss-making territory, posting a Sh12.15 billion loss in the first half of the year, a sharp reversal from the Sh513 million profit it recorded during the same period in 2024.
The airline’s managing director and chief executive, Allan Kivaluka, has attributed the outcome to a sharp decline in capacity (passenger numbers dipped by 14 percent), the temporary grounding of three long-haul aircraft, and a shortage of spare parts.
“In 2025, some of our wide-body fleet were grounded. We have nine Dreamliners—what we refer to as wide-body aircraft—designed for long-haul routes such as London and New York,” he said. “Of those nine, three were grounded between January and July. The main reason was a delay in receiving engines that had been sent out for maintenance and didn’t return in time.”
While the airline’s revenues dropped 19 per cent—from Sh91 billion in 2024 to Sh74 billion this year—its fleet ownership costs rose by 29 per cent, driven by the remeasurement of leased assets and the addition of a new aircraft.
Overheads increased by 64 per cent, largely due to currency fluctuations compared to the prior period when forex gains had boosted earnings, even as operating costs eased by 10 per cent thanks to reduced flying activity.
We expected to onboard four narrow-body aircraft but have only managed to bring in one, a Boeing 737-800, due to a shortage in the global market,” Kivaluka said, referring to the challenge of strengthening the airline’s fleet.
The airline’s persistent losses come despite sustained government interventions aimed at stabilising the national carrier. In February, for example, Kenya Airways held strategic talks with key government stakeholders in a move many hoped would support the seamless adoption of the ‘Fly Kenya’ policy for official travel.
“We are committed to working closely with Kenya Airways to streamline processes and ensure seamless integration of the air travel policy,” said Arthur Osiya, Chief of Staff at the Public Service Commission, in mid-February. “Fly Kenya positions the airline as a key enabler of efficient government service delivery…”
