Information Memorandum for Potential Strategic Investors in Kenya Airways

The Information Memorandum is a detailed, factual document that was distributed, under a confidentiality agreement, to potential airline industry strategic investors.  The International Finance Corporation prepared the document at the request of the Kenyan Government  and with the cooperation of Kenya Airways.  The document was intended to assist recipients in making their own appraisal of Kenya Airways and in deciding whether to submit a proposal in connection with the privatization.   It included seven chapters, eight appendices, and numerous tables and figures in a document of over one hundred pages.  The Information Memorandum gave potential strategic investors are clear view of Kenya Airways' assets, liabilities, operations, and business environment.

Information Memorandum Table of Contents

  1. Privatization
    1. Government Commitments
    2. Future Ownership Structure
  2. Investment Opportunity
    1. Attractions of Kenya Airways
    2. Potential Synergism for an Airline Partner
  3. Kenya Airways Operations
    1. Fleet Structure
    2. Route Structure
    3. Sales and Marketing
    4. Operating Performance
    5. Legal Status
    6. Corporate Structure, Management & Employees
  4. Kenya Airways' Subsidiaries & Affiliates
    1. Kenya Air freight Handling Limited
    2. Kenya Flamigo Airways Limited
    3. African Tours and Hotels Limited
  5. Financial Background
    1. Background
    2. Balance Sheet
    3. Historic Performance
    4. Taxation
    5. Capital Expenditure Programme
  6. Air Transport Market in Kenya
    1. Overview
    2. Scheduled Services
    3. Charter Airlines
    4. Kenya Airways' Market Share
    5. Cargo Traffic
    6. Market Outlook and Recent Trends
    7. Tourism in Kenya
    8. Airport Facilities in Kenya
  7. Political, Economic and Investment Environment in Kenya
    1. Introduction
    2. Economic Environment
    3. Economic Reform
    4. Investment Protection
    5. Taxation
Annexes
  1. Aircraft Technical Data
  2. Sales Office Network
  3. Route Maps
  4. Land and Facilities Description
  5. Board of Directors
  6. Organisation and Management Chart
  7. Financial Reports
    1. Financial year to March 31, 1994
    2. Six months to September 30, 1994
    3. Pro forma balance sheet as at September 30, 1994
  8. Glossary of Definitions

Go to Kenya Airways: Case Study in Privatization

Go to Topics in Economic Policy