There are speculations that Tanzania, through its state carrier may buy stakes in Kenya Airways.
The rumors have gone viral on social media platforms across East Africa, at the time when Nairobi is working to finalize a strategic partnership for the state carrier, Kenya Airways by December 2026.
This development, according to official reports from Nairobi, is part of Kenya’s efforts to recapitalize the flag carrier and reduce its dependence on government support.
At least Kenya’s National Treasury has told the country’s parliament in Nairobi.
And for reports still under wraps, Air Tanzania and Uganda Airline are being seen as some of the potential investors in the deal.
Observers point out that; Tanzania is keen on expanding the national carrier’s routes to international destinations such as United States and United Kingdom and piggybacking on Kenya Airways (KQ) could be the first starting point.
“At the rate of which Tanzanian investors have been buying Kenyan firms, I won’t be surprised if Air Tanzania becomes a majority shareholder in Kenya Airways,” as Arusha-based experts in financial matters stated.
But Kenya Airways already owns stakes in Precision-Air a private airline operating in Tanzania.
In a response to the Public Accounts Committee, the Treasury said Kenya Airways and the government, its majority shareholder, were actively seeking to raise capital through a strategic investor to stabilize the airline, support growth, and drive its turnaround strategy.
Hilka Birns, writing for CH-Aviation reveals that the process is underway and targeted for completion by December 2026, after which the necessary regulatory approvals will be sought, it said, as reported by multiple Nairobi-based media outlets.
The timeline accelerates the airline’s investor search, which Kenya Airways had previously indicated could conclude in the first quarter of 2027.
The carrier is seeking an investment boost of USD1.5 billion to USD2 billion via an international tender process.
Talks are being held with four potential strategic investors, with proposals under active review and a selection expected once assessments on both sides are completed. The airline is weighing a range of financing structures, including equity, debt, cash injections, and aircraft-backed arrangements.
The push comes as the airline’s financial position remains under pressure despite years of state support.
Kenya Airways posted negative equity of KES132 billion shillings (USD1 billion) at the end of 2025, compared to KES118.2 billion (USD912.5 million) a year earlier. Total liabilities stood at KES315.2 billion (USD2.4 billion), exceeding assets of KES183.2 billion (USD1.4 billion).
The Kenyan government, which owns 48.9 percent of the airline, has pledged to meet its immediate funding needs during 2026 while the investor search continues.
However, further state support has faced mounting criticism from parliament and the International Monetary Fund, both of which have urged the government to secure a strategic investor as a long-term solution.
The Treasury has previously outlined a broader transaction valued at KES259.3 billion (USD2 billion), potentially combining Kenya Airways with other state assets to improve the investment’s appeal.
It has also assured the IMF that direct government cash injections will cease once a strategic investor is secured, making the success of the current process central to ending years of taxpayer support for the carrier
