The financial results coincide with the departure of Group Managing Director and Chief Executive Officer Allan Kilavuka, who served for six years. Kilavuka, who assumed the role in January 2020 during the onset of the COVID-19 pandemic, is credited with overseeing “Project Kifaru,” a comprehensive turnaround strategy focused on cost discipline, operational efficiency, and balance sheet restructuring. Under his leadership, the airline reported its highest-ever revenue, passenger numbers, and freight volumes in 2024.
However, the 2025 annual report reveals a challenging final year for the airline. Total income fell by 14.3 percent to Sh161.5 billion. While total assets increased by 2.3 percent to Sh183.2 billion, total liabilities rose by 6 percent to Sh315.3 billion, indicating increased financial leverage. The airline stated that the “overall performance and operations in the year 2025 were severely impacted” by the inability to operate its wide-body fleet, which is critical for its long-haul international routes.
Kilavuka’s exit from the role, announced on December 16, 2025, was accompanied by a substantial compensation package. The airline’s latest annual report discloses that Kilavuka’s total compensation for 2025 amounted to Sh131 million, a 77 percent increase from the Sh74 million he received in the 2024 financial year. This sum includes a basic salary of Sh55.6 million and pension and benefits totaling Sh75.3 million. The benefits portion is notably large, comprising Sh15 million in terminal benefits and Sh48 million in other contractual obligations arising in 2025.
Following Kilavuka’s departure, the airline’s board appointed George Kamal, the former Chief Operating Officer, as acting Group MD and CEO. Kamal, who previously held senior roles at Air Arabia and Iraqi Airways, takes over during a period of transition. The airline’s board noted that Kilavuka served with “commitment, dedication, honor, and diligence,” acknowledging his role in restoring credibility to the brand among employees and partners.
The departure also marks the conclusion of a strategic initiative that began in 2021, when Kenya Airways and South African Airways agreed to establish a pan-African airline group. However, South African Airways withdrew from the agreement in September 2025, leaving the long-term strategic equity investor search for Kenya Airways unfinished. Analysts and industry observers note that while the 2025 losses are significant, they are attributed to specific, temporary operational factors rather than a structural failure of the turnaround strategy, though the increase in liabilities suggests ongoing pressure on the balance sheet.
Kilavuka’s tenure is defined by resilience. He led the airline through the existential threat of the pandemic, implementing strict cost controls that stabilized the business. His leadership earned international recognition for demonstrating that airline turnarounds in Africa are feasible with disciplined execution. Despite the 2025 setback, the airline’s asset base has grown, and the core commercial metrics of 2024 remain a benchmark for future recovery.
As the airline moves forward under acting leadership, the focus shifts to resolving the engine supply chain issues and securing strategic investment. The contrast between the 2024 record profits and the 2025 losses highlights the volatility of the aviation sector, where global supply chain shocks can rapidly erode margins. For now, the immediate priority for the board is to stabilize operations and re-engage with potential equity partners to ensure long-term sustainability.
