Kenya Airways Shares Suspension Extended for Six Months

Kenya Airways Shares Suspension Extended for Six Months

Kenya Airways Chairman Michael Joseph

Nairobi Stocks Exchange (NSE) has issued an extension to the suspension from trading of Kenya Airways shares for an additional six months with effect from October 4, 2020.

“Notice is hereby given on the extension of suspension from trading of Kenya Airways Plc shares,” NSE said in a statement.

The extension will allow the conclusion of the airline’s operational and corporate restructuring and its nationalization following the publication of the National Management Aviation Bill, 2020, on June 18, 2020.

The Capital Markets Authority (CMA) approved the suspension pursuant to the Capital Markets Act and regulation 22.

The Kenyan government owns 48.9 percent of the national carrier and it is expected to buy out the remaining holders of 51.1 percent of the shares.  Air France-KLM owns an almost 8 percent stake in Kenya Airways.

Local lenders own a 38.1 percent stake which they acquired in 2017 after KQ was unable to service its loans of Ksh16.9 billion.

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