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Kenya Airways Suspension At The NSE Extended For One Year

The airline had posted a net loss of Kh36.2 billion for the corresponding period of the previous fiscal, KQ said in a regulatory filing.

Kenya Airways Chairman Michael Joseph

The Nairobi Securities Exchange (NSE) on Tuesday further extended the suspension of Kenya Airways by 12 months stating that “operational and corporate restructure is still ongoing and the government is expected to give a clear direction on its buy-out or bail-out.”

“The suspension was approved and issued by the Capital Markets Authority (CMA) pursuant to section 11(3) (w) of the Capital Markets Act and regulation 22 of the Capital Markets (Securities) (Public Offers, Listings and Disclosures) Regulations, 2002. The extension of suspension from trading the company’s shares will remain in force for an additional twelve months, with effect from January 5th, 2022,” said NSE.

“All shareholders, investors and the general public are asked to take note of the suspension.”

KQ shares were initially suspended from trading on NSE in July 2020  after Parliament began to review the National management Aviation Bill, 2020 that would lead to the establishment of Kenya Aviation Corporation, a holding company that will house Kenya Airways, National Aviation Council and Kenya Airports Authority.

The suspension was extended for nine more months in April 2021. The Kenyan government owns a 48.9 per cent stake in KQ, while Air France-KLM owns 7.8 per cent.

In December, National Treasury Secretary Ukur Yatani said the government plans to take over KSh93.4 billion of the national carrier’s debt owed to suppliers.

It will also give the airline KSh53.4 billion in direct budget support in the fiscal year that ends in June 2022 as well as the subsequent one.


 

IK is a Masinde Muliro University graduate. His interests are in news and analysis on women's rights, politics, technology, law, and global affairs.

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