ABSTRACT
This article explores the transformation of Kenya Airways from a loss-making state-owned enterprise (SOE) to a very successful, profitable African airline and its relationship with KLM-Royal Dutch Airlines. First, it analyzes the circumstances leading to the creation of Kenya Airways and then discusses the managerial and financial problems it encountered from the period it was set up until it was privatized. It also attempts to explain why and how Kenya Airways has been able to use privatization to avert liquidation. In this regard, it explores the benefits of privatization for the airline and the country as a whole and highlights lessons learned from this experience for the privatization process and strategies in Africa.
