Kenya Airways (KQ) is celebrating its 48th year of operation, serving as Africa's leading airline, connecting 42 destinations around the world. The airline has won numerous awards, including being named Africa's leading airline at the 2020 World Travel Awards. KQ has modernized its fleet. Acquired Boeing 787-8 Dreamliner and Embraer E190 jets in 2014 After 10 years of losses, Kenya Airways reports profit of KSh 513 million shares in first half of 2024, CMA suspends KQ shares on NSE Cancellation
Elijah Ntongai, a journalist at TUKO.co.ke, has over three years of expertise in finance, business and technology research and reporting, providing insight into trends in Kenya and the world.
Kenya Airways (KQ) has been in the aviation industry for 48 years, connecting Kenya and the international community.
Source: Twitter
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KQ is currently a member of the SkyTeam Alliance, a prominent African airline that flies to 42 destinations worldwide, including 35 destinations across Africa, and transports more than 4 million passengers annually.
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In 2020, KQ, dubbed the Pride of Africa, was recognized as Africa’s leading airline by the World Travel Awards.
“48 years of flying high! Today, we celebrate a tradition of excellence and a future of possibility. Thank you for joining us on our incredible journey. , culture and market!” Kenya Airways told X.
In 2013, the airline made history by launching non-stop flights to the United States, becoming a vital link between Africa and North America. The addition of the Boeing 787 Dreamliner to the company's fleet in 2014 further enhanced its long-range capabilities and provided passengers with an unparalleled travel experience.
When was Kenya Airways founded?
On January 22, 1977, a new chapter in African aviation began with the establishment of Kenya Airways, which was created from the dissolution of the East African Community and the dissolution of East African Airlines.
Kenya Airways started operations in a challenging environment, but quickly differentiated itself from its competitors. Initially operating a small fleet, the airline's focus on safety, efficiency, and customer service helped it gain a foothold in the competitive aviation industry.
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However, factors such as the need for capital investment and the belief that airlines could be better run by the private sector led the Kenyan government to begin the privatization process in 1986.
Privatization of Kenya Airways
The government took the first step towards privatization by publishing Session Paper No. 1 of 1986 on “Economic Management for New Growth''. This document outlines the government's intention to divest capital from companies that can be more effectively managed by the private sector.
The Policy Paper on Public Enterprise Reform and Privatization was published in July 1991 to prioritize the privatization of Kenya Airways. In April 1992, a new board of directors was appointed at Kenya Airways, with Philip Ndegwa as its chairman, with the task of commercializing Kenya Airways and preparing it for privatization.
The commercialization process was successful and Kenya Airways reported its first profits in 1993-1994.
In May 1995, the IFC Information Memorandum was sent to 154 airlines looking for a “strategic partner,” with KLM Royal Dutch Airlines ultimately selected, and a shareholder agreement and basic cooperation agreement signed with KLM Royal Dutch Airlines in December. It was done.
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Finally, the privatization process was completed with an initial public offering (IPO) of shares issued in March 1996 and Kenya Airways shares began trading on the Nairobi Stock Exchange (NSE).
Kenya Airways' initial public offering was 94% oversubscribed, with domestic applicants totaling 112,000 shares, or 311 million shares (182% of available shares), and overseas investors 146.7 million shares. 1,000,000 shares (228% of the quota), demonstrating strong confidence in Kenya Airways. Company Outlook.
This privatization effort will take the airline to a public-private ownership model, injecting much-needed capital and providing access to global expertise, allowing Kenya Airways to modernize its operations and expand its network. is completed.
Building the Kenya Airways fleet
After privatization, the company obtained capital to invest in its fleet and delivered the first of four Boeing 737-300s in 1997. These aircraft were part of the airline's strategy to replace older models with more efficient and reliable aircraft.
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A member of the famous 737 Classic series, the Boeing 737-300 is suitable for Kenya Airways' regional and short-haul international routes, offering improved fuel efficiency and lower maintenance costs compared to its predecessor.
Over the next few years, the airline expanded its fleet by acquiring additional 737-300s, and in 2006 Kenya Airways introduced the Embraer E170, the first in a series of regional jets from Brazilian manufacturer Embraer. By 2012, the airline had expanded in size. The company's Embraer fleet now includes the E190 model, increasing seating capacity and operational flexibility.
Around the same time, Kenya Airways was also preparing to expand its long-haul routes, adding the state-of-the-art Boeing 787-8 Dreamliner to its fleet in 2014, establishing itself as a global player. .
Currently, KQ operates four aircraft models for cargo and passenger flights. These include the Boeing 787-8 Dreamliner, the Boeing 737-800, which is part of the Boeing 737 Next Generation (737NG) family, the Boeing 737-300F, a freighter based on the Boeing 737-300, and the Embraer E190 . A narrow-body, twin-engine jet aircraft manufactured by Brazilian aerospace company Embraer.
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KQ's recent awards and achievements
Kenya Airways has consistently earned a reputation for outstanding service and operational standards, winning numerous prestigious awards over the years.
In 2020, the airline was named Africa's Leading Airline at the World Travel Awards, underscoring its position as the region's top airline. In early 2015, the organization honored the airline as Africa's leading airline in the business class category.
Kenya Airways became the first sub-Saharan airline to achieve IATA Operational Safety Audit (IOSA) certification in 2005.
Additionally, the airline's cargo division has won numerous awards, including the African Cargo Airline of the Year award in 2015 and Africa's Best Cargo Airline in 2014.
How is Kenya Airways' financial performance?
The national airline has struggled to record profits over the past two decades, often requiring bailouts from the Kenyan government.
However, as previously reported on TUKO.co.ke, Kenya Airways reported its first profit in more than a decade in 2024 following a series of reforms led by current CEO Alan Kiravka.
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Kenya Airways reported a profit after tax of Ksh513 million for the six months to June 2024, a significant turnaround from a loss of Ksh23.7 billion in the same period in 2023.
Furthermore, in January 2025, the Capital Markets Authority (CMA) announced that it had imposed the highest tax on Kenya Airways' shares since 2020, when the coronavirus disease (COVID-19) pandemic devastated the global aviation industry. The suspension of transactions imposed by the company was lifted.
Notably, the lifting of the ban has been well-received by the capital markets, with KQ shares hitting their highest in over five years on the NSE after weeks of consistent gains.
Proofread by Mercy Nyambura Guthua, journalist and copy editor at TUKO.co.ke
Source: TUKO.co.ke
