The Nairobi Securities Exchange (NSE) has announced that the trading of Kenya Airways PLC shares will remain suspended for 12 more months, starting January 1, 2024.
This is the third extension of the suspension. KQ shares were initially suspended from trading on the NSE in July 2020 after Parliament began to review the National Management Aviation Bill 2020, which would lead to the establishment of Kenya Aviation Corporation.
“The extension of the suspension seeks to enable the company to complete its operational and corporate restructuring processes,” NSE said in a public notice dated January 2, 2024.
The latest suspension was approved by the Capital Markets Authority (CMA), the regulator of the securities industry in Kenya.
The announcement came as a surprise to some investors, who expected the airline to resume trading in 2024.
The management of KQ is on record saying that they expect the company to perform well enough to resume distribution of dividends to shareholders in 2024.
This is 2024 & so market watchers ought to follow KQ affairs with a fine tooth comb. pic.twitter.com/6ewx3ckGXq— Julians Amboko (@AmbokoJH) January 3, 2024
Kenya Airways CEO Allan Kilavuka had expressed optimism that the airline would return to profitability in 2024, citing its significant role in the country’s economy.
He said the airline contributes 4% to the Gross Domestic Product (GDP) and has the potential to grow further with adequate support.
However, the airline’s financial performance has been dismal in recent years, mainly due to the impact of the COVID-19 pandemic on the aviation industry.
In 2023, the airline reported a net loss of KSh 21.7 billion for the first half of the year, a 120% increase from the KSh 9.8 billion loss recorded in the same period in 2022.
On the positive side, the airline reported an operating profit of KSh 998 million for the first time in six years, a 120% improvement from the KSh 5 billion loss reported in the first half of 2022.
The Kenyan government owns a 48.9 per cent stake in KQ, while Air France-KLM owns 7.8 per cent.
Kenya Airways Forecasts Ksh 32Bn Massive Forex Losses in FY23
