Commercial Aviation

Kenya Airways and Air Tanzania Partner to Boost Cargo and MRO Services

Kenya Airways and Air Tanzania sign MoU to enhance cargo operations and MRO services, strengthening East African aviation connectivity.

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Kenya Airways and Air Tanzania Partner on Cargo and MRO: Strategic Alliance for Regional Growth

In a move that signals a new era of regional cooperation in African aviation, Kenya Airways and Air Tanzania have signed a strategic memorandum of understanding (MoU) to collaborate on cargo operations, Maintenance, Repair and Overhaul (MRO) services, engineering, and staff training. This partnership, formalized on July 28, 2025, aims to strengthen connectivity across East and Southern Africa while enhancing operational efficiency and economic integration.

The agreement comes at a time when the African aviation industry is striving to recover from the impacts of the COVID-19 pandemic and to align with continental initiatives such as the Single African Air Transport Market (SAATM) and the African Continental Free Trade Area (AfCFTA). By joining forces, Kenya Airways and Air Tanzania are positioning themselves to compete more effectively on regional and global fronts, particularly in the rapidly growing cargo and MRO segments.

While the two airlines have had a complex history, marked by disputes over traffic rights and competition, the new partnership represents a strategic pivot toward collaboration. It also reflects a broader trend of African carriers seeking to consolidate resources and enhance competitiveness through regional alliances.

Historical Context and Background

Both Kenya Airways and Air Tanzania were born out of the dissolution of East African Airways in 1977. Since then, they have operated independently as national carriers, with Kenya Airways establishing itself as a major player in East Africa and Air Tanzania gradually rebuilding its network and fleet.

Relations between the two airlines have not always been smooth. In January 2024, tensions escalated when Tanzania imposed a temporary ban on Kenya Airways’ passenger flights to Dar es Salaam. The move was in response to Kenya’s initial refusal to grant Air Tanzania fifth-freedom cargo rights. The dispute was eventually resolved when Kenya agreed to the cargo rights, leading to the lifting of the ban and laying the groundwork for improved cooperation.

This recent MoU is part of Kenya Airways’ broader strategy to build a pan-African aviation network. The airline had previously explored a similar alliance with South African Airways (SAA), although that effort was delayed due to financial restructuring. With Air Tanzania, Kenya Airways appears to have found a more immediate and regionally aligned partner.

Strategic Significance

The partnership is designed to address several key challenges facing African aviation, including limited cargo capacity, underdeveloped MRO infrastructure, and fragmented regulatory frameworks. By combining resources, the two airlines aim to offer more reliable and efficient services across their networks.

From a cargo perspective, the collaboration is timely. Kenya Airways reported a 25% increase in cargo volume in 2024, reaching over 70,000 tonnes. Air Tanzania, meanwhile, operates a Boeing 767-300F freighter that services regional routes, including between Dar es Salaam and Nairobi. The partnership will enable better route optimization and cargo consolidation, particularly for time-sensitive goods like perishables and pharmaceuticals.

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In the MRO space, Kenya Airways brings significant experience and capacity. Its MRO division currently handles 65% of its own maintenance and provides services to third-party carriers such as RwandAir and Astral Aviation. Air Tanzania stands to benefit from this expertise as it continues to expand its fleet and international presence.

“This partnership underscores our commitment to building regional capacity to support economic growth, trade, and tourism across East Africa.” — Allan Kilavuka, CEO, Kenya Airways

Operational and Financial Developments

Fleet Expansion and Cargo Operations

Kenya Airways has been investing in its cargo fleet, adding two Boeing 737-800 freighters in 2024. This brings its total cargo aircraft to four, enabling it to meet rising demand, particularly in the horticulture and seafood sectors. Air Tanzania’s freighter operations, though smaller in scale, are strategically positioned to complement Kenya Airways’ network.

The African air cargo market grew by 8.5% in 2024, according to industry reports. However, load factors remain relatively low at around 41.8%, suggesting that there is still significant untapped capacity. The Kenya-Air Tanzania alliance aims to address this by improving load consolidation and route efficiency.

In addition to cargo, the partnership includes plans for joint flight scheduling and codesharing. These measures are expected to enhance connectivity between secondary cities and major hubs, thereby boosting both passenger and cargo volumes.

MRO Services and Infrastructure

The African MRO market is valued at approximately $1.54 billion as of 2025 and is projected to grow at a compound annual growth rate (CAGR) of 4.79% through 2033. Kenya Airways is well-positioned to capitalize on this growth, especially with its ongoing discussions to deepen ties with SAA Technical, the maintenance arm of South African Airways.

By collaborating with Air Tanzania, Kenya Airways can extend its MRO services to a broader range of aircraft and operators. This could include joint ventures, shared facilities, and coordinated training programs. For Air Tanzania, the partnership offers access to established MRO capabilities without the need for substantial upfront investment.

However, scaling third-party MRO services will require significant investment in tools, personnel, and certification processes. Both airlines will need to navigate regulatory hurdles and ensure compliance with international safety standards.

Broader Industry and Regional Context

Alignment with Continental Initiatives

The Kenya-Air Tanzania partnership aligns with the goals of SAATM and AfCFTA, both of which aim to enhance intra-African connectivity and trade. By improving cargo and passenger services, the alliance supports these initiatives and contributes to broader economic integration.

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SAATM seeks to liberalize air transport across Africa, removing barriers such as restrictive bilateral agreements. The Kenya-Air Tanzania MoU could serve as a model for other regional partnerships, demonstrating the benefits of cooperation over competition.

AfCFTA, meanwhile, aims to create a single market for goods and services across the continent. Efficient air cargo services are essential for realizing this vision, particularly in landlocked countries that rely heavily on air transport for trade.

Competitive Landscape

The African aviation market is becoming increasingly competitive, with carriers like Ethiopian Airlines and Qatar Airways expanding their presence. These airlines benefit from larger fleets, better financing, and established global networks.

By forming strategic partnerships, smaller carriers like Kenya Airways and Air Tanzania can pool resources and improve their competitiveness. The MoU allows them to offer more comprehensive services while reducing operational redundancies.

Such alliances also help counter the dominance of foreign carriers in African skies. By strengthening regional carriers, partnerships like this contribute to the long-term sustainability of the continent’s aviation industry.

Conclusion

The partnership between Kenya Airways and Air Tanzania marks a significant step toward regional integration in African aviation. By focusing on cargo and MRO services, the two airlines are addressing critical gaps in infrastructure and capacity while aligning with broader economic and policy goals.

Looking ahead, the success of this alliance will depend on effective implementation, regulatory support, and continued investment in infrastructure. If executed well, it could serve as a blueprint for similar collaborations across the continent, ultimately contributing to a more connected and competitive African aviation landscape.

FAQ

What is the main focus of the Kenya Airways and Air Tanzania partnership?
The partnership focuses on cargo operations, MRO services, engineering collaboration, and staff training.

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When was the MoU signed?
The memorandum of understanding was signed on July 28, 2025.

What are the benefits of this partnership?
Benefits include improved regional connectivity, enhanced cargo efficiency, expanded MRO capabilities, and alignment with continental trade and transport initiatives.

Sources

Photo Credit: Kenya Airways

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