National carrier Kenya Airways (KQ) owed the Kenya Civil Aviation Authority (KCAA) Sh1.5 billion in unpaid service fees as at the end of the financial year to June 2025, new disclosures show — a sum that accounts for more than half of the cumulative debt owed to the regulator by airlines operating in the country.
The figures place KQ at the top of a growing list of carriers that have fallen behind on statutory payments to KCAA, the body mandated with overseeing aviation safety, air navigation services, and regulatory compliance across Kenya’s airspace. Service fees owed to the authority typically cover charges such as air navigation services, licensing, and safety oversight functions that airlines are required to settle as part of their operating obligations.
The scale of KQ’s arrears raises fresh questions about the airline’s financial position, which has for years been under scrutiny amid recurring losses, high debt levels, and a restructuring push backed by the government.
KQ remains majority state-owned, and its financial troubles have periodically required taxpayer-funded bailouts and guarantees to keep operations running and meet its obligations to lenders, lessors, and now, it appears, its own regulator.
Unpaid dues to KCAA also have implications for the regulator’s own budget, since the authority relies on fees collected from airlines to fund its oversight and safety functions.
A build-up of arrears from the country’s flagship carrier could strain KCAA’s operations even as it continues to certify and monitor KQ’s fleet and operations.
It remains unclear what payment plan, if any, has been agreed between KQ and KCAA to clear the outstanding balance, or whether the debt features in KQ’s ongoing restructuring discussions. Neither party has issued a public statement addressing the disclosure.
The revelation comes as scrutiny of state corporations’ financial dealings intensifies, with disclosures of unpaid obligations between government-linked entities increasingly drawing public and parliamentary attention.
