Kenya Airways (KQ, Nairobi Jomo Kenyatta) acting CEO George Kamal has confirmed to ch-aviation that the airline is in ongoing discussions for the long-term lease of a B777F after it ended a capacity agreement with Terra Avia (T8, Chisinau International) due to soaring fuel costs.

"Discussions [for the B777F] are still ongoing, and it all depends on technical and financials [aspects]," he told ch-aviation. Details on sources and variants are premature to disclose, he added.

Kamal first revealed in June 2026 that Kenya Airways Cargo was looking to swap the capacity agreement on B747-400(BCF) ER-BYK (msn 25152) for B767 or B777 widebody capacity, seeking to retain about 180 to 200 tons per day.

He confirmed that the capacity agreement with Avia Terra, announced in March 2026, had been terminated due to high fuel prices, which pushed up the cost per ton on the B747 freighter.

Speaking during a half-year briefing on August 26, 2026, Kamal concurred: "That really became a burden because [we had] to fly cargo at the right cost," adding that the B747 freighter was "not the right one for us," Air Cargo News reported.

In a subsequent televised interview on Nairobi-based CGTN Africa, Kamal said Kenya Airways intended to increase its share of Kenya's air cargo market from about 11% to more than 40%. The airline currently operates an in-house narrowbody cargo fleet of two company-owned B737-300(SF)s and two leased B737-800(SF)s, ch-aviation data shows.

Kamal reiterated that the airline was working to restore aircraft grounded by global supply-chain disruptions. Two B787-8s remain out of service awaiting replacement engines, while two out of nine B737-800s are also grounded. A shareholder loan has been secured to fund their return to service over the next six months, with Kenya Airways working with OEMs including General Electric to complete the programme.

He added that one B787-8 has already returned to service following a heavy D-check performed by the airline's maintenance division, while a B767-300ER had resumed operating the route to London Heathrow.

Strategic investor

On the ongoing investor process, Kamal said Kenya Airways is preparing to bring in a strategic investor, but only after completing a restructuring of its balance sheet. Shareholders have approved additional capital support to strengthen the company.

"Once the balance sheet has been restructured, the airline will be in a position to attract significant new capital, making it more appealing to investors," he added.

KPMG has prepared an investment memorandum to be used in the process, and Kenya Airways is in the process of appointing a transaction adviser to identify and engage potential strategic investors.

Kenya Airways chairman Kiprono Kittony said the airline had received expressions of interest from investors in the United States, China, South Africa, and Singapore, but stressed that any capital-raising process would be conducted transparently because the carrier is listed on the Nairobi Securities Exchange.

"We are confident that we shall achieve both a capital-raise partner and a strategic partner from the aviation industry," he told Citizen TV.

Kittony also confirmed that the restructuring plan includes cleaning up the airline's balance sheet, potentially by converting debt owed to the Kenyan government and a consortium of local banks into equity.

Kamal in June already revealed that said the prospective investor proposals include loans, equity injections, and an offer to contribute aircraft in exchange for a stake in the airline, potentially reduce the amount of cash Kenya Airways needs to spend on fleet acquisition or leasing.

Kenya Airways reported a net loss of KES16.1 billion shillings (USD124.4 million) for the first half of 2026 despite a 9% increase in revenue to KES81 billion (USD626 million), its second-highest half-year revenue on record. The airline said an "exceptionally challenging" cost environment drove operating expenses up 14% to nearly KES92 billion (USD711 million), with fuel costs surging 32%, while aircraft spares shortages and longer lead times further squeezed margins.