Kenya Airways shares resumed trading at the Nairobi Securities Exchange (NSE) on Monday 6th January 2024 after the lifting of a five-year freeze. The end of suspension came after the withdrawal of a proposal to nationalise the airline, as well as improved performance, the Nairobi Securities Exchange (NSE) said.
“The suspension on the trading of Kenya Airways PLC shares was lifted following the company’s recent performance which saw the company record a profit after tax and the withdrawal of the National Aviation Management Bill 2020,” NSE said in a notice.
Kenya Airways returned to profitability in the first half of 2024, for the first time in a decade, posting a net profit of Ksh513 million. KQ’s share price closed its last trading day before suspension at Ksh3.83 per share in July 2020.
On resumption of trading, Kenya Airways rose 5.7% to Ksh4.05 following the Nairobi Stock Exchange notice lifting the suspension in the trading of Kenya Airways Plc securities, effective January 5, 2025. Trading experts say the shares are expected to gain more speed, powered by renewed interest after pending issues were sorted.
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Last year, the national carrier ended a 10-year loss making streak, attributed to a reduction in finance costs. The government, which is the principal shareholder, has taken over Ksh83 billion in loans to restructure the airline.
Kenya Airways trading at Nairobi Securities Exchange was first suspended in July 2020, when Members of Parliament began reviewing a law to allow the state to take over the airline. The National Aviation Management Bill sort to re-nationalise the national carrier through the establishment of the Kenya Aviation Corporation.
In 2023, trading of Kenya Airways shares was frozen at the NSE for a further 12 months to give the carrier more time to complete the operational and restructuring process.
The government is the largest shareholder with a 48.9% stake, followed by KQ Lenders Company 2017 Limited – comprising Equity Bank, KCB Group, Cooperative Bank, Diamond Trust Bank, NCBA Bank, I&M Bank, and Ecobank – at 38.09%. Dutch airline KLM holds 7.8% with Kenya Airways employees having 2.44%. About 75, 000 individuals collectively own 2.8% of the national carrier through the stock market.
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