Kenya Airways (KQ, Nairobi Jomo Kenyatta) owed the Kenyan government KES122.95 billion (USD940 million) as of June 30, 2026, making it the country's second-largest debtor among state corporations after Kenya Railways Corporation, according to the National Treasury's Annual Public Debt Management Report for FY2025/26.

The Treasury's schedule of outstanding on-lent and direct government loans shows that Kenya Airways' balance remained unchanged from June 2025, with no repayments recorded against the above cumulative amount disbursed.

Kenya Railways Corporation was the largest debtor with an outstanding balance of KES547.38 billion (USD4.2 billion).

Separately, the government has an outstanding KES2.45 billion (USD18.7 million) guarantee covering borrowing by Kenya Airways from local banks. The guarantee, dating from 2017, was issued through MTC Trust & Corporate Services Limited, acting as security agent for the lenders.

The disclosures were overtaken in October 2026 by a Kenya Cabinet decision to approve USD350 million in shareholder financing for Kenya Airways to meet urgent financial obligations, including aircraft maintenance and returning grounded aircraft to service.

The Cabinet also endorsed the proposed conversion of the KES122.95 billion in existing government loans into an equity-qualifying tradable instrument. The measure is intended to strengthen the airline's balance sheet and support ahead of a proposed strategic equity investment of up to USD1.5 billion. The selection of a strategic investor is expected to conclude by the end of 2026 or in early 2027.