The government makes the first move towards privatisation by publishing the Sessional Paper No.1 of 1986 on “Economic Management for Renewed Growth”. The document for the first time, spells out the government’s intention to divest from corporations which could be run better by the private sector.
A new board is appointed at Kenya Airways in April under the chairmanship of Philip Ndegwa with a mandate to commercialise and prepare the airline for privatisation.
A policy paper on Public Enterprise Reform and Privatisation setting out policy objectives is issued in July. The policy paper gives high priority to the privatisation of Kenya Airways.
Commercialisation process produces the first profits.
Shareholders’ agreement and a master cooperation agreement with KLM are concluded in December.
An IFC information memorandum is sent to 154 airlines in search of a “strategic partner” culminating in the eventual selection of KLM. This takes place in May 1995.
An initial public offer for shares is issued in March.