By JAMES ANYANZWA
Air France-KLM Group has downgraded its investment in Kenya Airways to a “financial asset” that could be sold any time when the need arises. The Group’s stake in Kenya Airways Ltd has been reduced to 7.76 percent as of December 31, 2023, with no significant influence on the airline. This move aligns with the parent company’s restructuring plan to focus on sustainability and improve financial performance.
Economists see this shift as a signal for potential divestment in the future if deemed necessary. With KLM’s stake in KQ considered mainly a financial asset, the possibility of selling shares in the open market remains. Despite once having a controlling stake, KLM now lacks substantial influence on Kenya Airways’ operations due to the reduced ownership percentage.
Debate continues on whether Air France-KLM will sell its stake in KQ, especially with the government’s plans for nationalization. The future of the airline remains uncertain as stakeholders navigate through restructuring and ownership changes.