Qatar and Singapore State Investors Vie for Control of Kenya Airways

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State-backed investors from Qatar and Singapore are competing for control of Kenya Airways, as the Kenyan government weighs options under its privatization program, according to people familiar with the process.

Formal proposals from both sides are under review, with a decision expected as Nairobi looks to place the loss-making carrier on a more durable footing.

The talks come nearly a decade after a sweeping debt-to-equity restructuring reshaped the airline’s ownership. As of January 2026, Kenya Airways operates as a public-private partnership, with the state and a consortium of local banks as the dominant shareholders.

Trading in the stock resumed on the Nairobi Securities Exchange in January 2025 after a multi-year suspension.

Ownership After the 2017 Restructuring

The Government of Kenya holds 48.9% of Kenya Airways through the National Treasury, having raised its stake from about 29.8% in 2017 by converting billions of shillings in loans into equity to stabilize the carrier.

KQ Lenders Company 2017 Ltd, a special purpose vehicle owned by a consortium of 10 local banks, controls 38.1% after converting about $225 million (Sh23 billion) of debt into shares. The lenders include Equity Bank, KCB and Co-operative Bank.

Air France-KLM owns 7.8%, down sharply from a pre-2017 peak of 26.7%. Minority investors account for roughly 2.8%, spread across about 75,000 individuals, while employees hold around 2.4% via a share scheme.

Two Bids, Two Models

Temasek Holdings, the state-owned investment firm of Singapore, has been evaluating Kenya Airways for more than two years. Temasek manages a net portfolio valued at about S$434 billion ($324 billion) as of March 2025 and is the majority owner of Singapore Airlines.

Kenyan President William Ruto has previously pointed to Singapore Airlines as a benchmark for a commercially run, state-owned enterprise.

Under Temasek’s proposal, the firm would acquire a majority stake in Kenya Airways, reducing the Kenyan government’s holding to roughly 10%. Temasek would then lead a comprehensive restructuring aimed at global commercial standards.

From April 1, 2026, overseas investments would be overseen by a new unit, Temasek Global Investments, following an internal reorganization.

By contrast, Qatar Airways, the operating airline wholly owned by the Qatari state via the Qatar Investment Authority, has focused on a management-led approach rather than outright equity control.

The carrier, named the world’s best airline by Skytrax in 2025, has proposed to inject capital to stabilize Kenya Airways and steer its turnaround in return for a share of future profits.

People familiar with the discussions say the Qatar plan also contemplates management rights tied to Jomo Kenyatta International Airport. Qatar Airways has expanded cooperation with Kenya Airways, launching an enhanced codeshare in October 2025 that covers 19 destinations across Africa, Asia and the Middle East.

Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.