Kenya Airways expanded too fast — then recorded the country’s worst corporate loss

Kenya Airways was Africa’s most respected carrier in the 2000s, known for reliable service and a strong network across the continent. In 2013, the airline launched “Project Mawingu” — an aggressive expansion plan that added new long-haul routes to Asia and Europe and expanded its fleet with wide-body aircraft.

The expansion coincided with a sharp rise in fuel prices and a weakening Kenyan shilling. Kenya Airways had also signed a 1996 partnership agreement with KLM that gave KLM significant operational control. By 2015, the airline was reporting losses. In 2016, it recorded the worst corporate loss in Kenyan history, estimated at over $250 million. The airline’s share price collapsed from KES 35 in 2011 to KES 2.

Kenya Airways was effectively nationalised. The government increased its stake from 29.8% to 48.9% and guaranteed $525 million in debt to US Exim Bank. A consortium of local banks converted loans to equity. The airline survived but spent years in restructuring under “Project Kifaru.” It returned to profit only in 2025, a decade after the collapse.