The debt load of Kenya Airways (KQ), estimated to be around 187.74 billion shillings ($1.35 billion), is a major concern for potential investors looking to bid on a stake in the state-owned airline.

KQ managers embarked on missions to mull the attraction of the company’s equity offer in the US, China and the Middle East but received no commitments so far, Business Daily newspaper reported.

“All the potential investors agreed that the fundamentals of the company are very strong,” KQ CEO Allan Kilavuka said, adding the concern was on the debt level.

He advised the need to lower the airline’s debt to get extra funding for the company.

Last December, Kenya’s President William Ruto led a delegation to Washington with a pitch to sell a controlling stake in the KQ.

The airline owes $1.35 billion to creditors as of May 31, 2023, including the 61.4 billion Shilling ($439.8 million) Tsavo facility related to the carrier’s acquisition of six Boeing 787-8 aircraft, one Boeing 777-300 ER aircraft and one Genx engine in 2012.

(Editing by Seban Scaria seban.scaria@lseg.com )