Kenya Airways (KQ) on Friday launched 250 million U.S. dollars rights issue to raise funds to increase its fleet and expand the air route network to link Nairobi to all African countries and the rest of the world.
The national carrier is seeking to raise the money the Nairobi Securities Exchange (NSE) to fund its expansion plans that will see it more than double the number of its aeroplanes to 115 in the next ten years.
The company said it will also take bank loans to finance the ten-year expansion plan that will cost 3.6 billion dollars when completed.
The rights issue has already attracted 49 percent subscription after the Kenyagovernment that owns 23 percent of the company and the KLM that owns 26 percent of the company said they will take all their rights.
President Mwai Kibaki who launched the fund raising process said the expansion besides improving inter-connectivity will allow flexibility in movement of both cargo and passengers.
Kenya Airways plans to double its fleet numbers from the current 34 planes to 68 through the expansion plan.
“Efficient aviation infrastructure facilitates internal and external trade through the quick movement of passengers and cargo. The government is committed towards making investments in air transport infrastructure across the country,” he said during the launch of the Kenya Airways Rights issue in Nairobi.