Kenya Airports Authority becomes PLC in ongoing state-owned enterprise reforms

The Kenya Airports Authority (KAA) has formally transitioned from a state corporation to a public limited company.

In a public notice issued on Thursday, August 27, 2026, KAA announced that it had officially transitioned from Kenya Airports Authority to Kenya Airports Authority PLC.

The authority said the new company was incorporated as a public limited company on June 3, 2026, under the Companies Act, 2015. The certificate of incorporation cited by KAA bears the registration number PLC-P60U58MWD.

The transition comes as the Government continues to implement a new legal framework for state-owned enterprises, under which a number of existing state corporations are being reconstituted as public limited companies.

KAA said the change is intended to align the organisation with government reforms aimed at strengthening governance, accountability, commercial sustainability and operational performance.

The legal basis for the transformation is the Government Owned Enterprises Act, 2025, which was assented to on November 21, 2025, published in the Kenya Gazette on November 27 and commenced on December 5, 2025.

The Act establishes a new framework for government-owned enterprises and specifically provides for the reconstitution of existing government-owned entities into public limited companies.

Its stated objectives include improving the performance of government-owned enterprises, strengthening their commercial orientation, enhancing accountability and separating government ownership functions from the day-to-day operations of the enterprises.

KAA is specifically listed among the government-owned enterprises covered by the new law. The legislation also repealed the Kenya Airports Authority Act, Cap. 395, which had previously provided the statutory framework for KAA.

Under the transition provisions of the Government Owned Enterprises Act, the affected state corporations are required to incorporate public limited liability companies under the Companies Act.

The newly incorporated companies become the successors of the former government-owned enterprises, with their rights, duties, obligations, assets and liabilities transferred to the successor companies.

Under Kenya's Companies Act, a public company is one whose articles allow members to transfer their shares, do not prohibit invitations to the public to subscribe for shares or debentures, and whose certificate of incorporation states that it is a public company.

A company that is both limited and public is required to use “public limited company” or “PLC” at the end of its name.

The Government Owned Enterprises Act provides for government ownership of government-owned enterprises while requiring them to operate under a more commercially focused corporate structure.

The Act defines a government-owned enterprise to include a company in which the national government or a national government entity holds more than 50 per cent of the share capital.

It also provides that the Cabinet Secretary for the National Treasury holds government shares in such enterprises in trust for the national government.

The legislation further requires government-owned enterprises to operate commercially, with the law stating that they should operate for profit, be self-financing and be self-sustaining, while remaining accountable to the public through the National Treasury.

At the same time, the law recognises that government-owned enterprises can continue performing public service obligations.

Where such obligations are assigned, they are to be accounted for separately and may be funded through government budgetary resources.

KAA's previous legal structure KAA was originally established as a body corporate under the Kenya Airports Authority Act.

The repealed law provided for the establishment of the Authority, its powers and functions and its role in relation to aerodromes and airport facilities.

In addition, the former Act established KAA as a corporate body with perpetual succession and the capacity to sue and be sued, acquire and dispose of property and perform functions assigned to it under the legislation.

The new corporate structure replaces that statutory model with a company incorporated under the Companies Act, while the Government Owned Enterprises Act provides for continuity of the former entity's assets, liabilities, rights and obligations.

In its Thursday notice, KAA said the transformation is part of wider State-Owned Enterprise reforms intended to enhance governance, accountability, commercial sustainability and operational performance.

The authority said the repeal of the Kenya Airports Authority Act on December 5, 2025, under the Government Owned Enterprises Act, created the legal framework for the incorporation.

KAA Managing Director and CEO Moses Wekesa said the newly constituted company remains committed to delivering safe, secure, efficient and sustainable airport operations.