Kenya Airways (KQ) shares surged 5.74% on their first day of trading following a five-year suspension on the Nairobi Securities Exchange (NSE).
Trading volume reached 173,700 shares, with a turnover of KSh 703,842.00.
The trading halt was lifted on January 5, 2025, after the government abandoned plans to renationalize the airline.
Factors Contributing to the Suspension Lift
The government’s decision to withdraw the proposal to bring Kenya Airways under full state control paved the way for the resumption of trading.
Kenya Airways achieved a net profit of KSh 513 million in the first half of 2024, a significant milestone after years of financial struggles.
Impact on Shareholders
The lifting of the suspension provides an opportunity for over 75,000 individual shareholders to participate in the airline’s future.
Many shareholders have been waiting for this opportunity to potentially see their investments grow.
Despite the positive developments, challenges remain, including intense competition in the aviation industry and operational inefficiencies.
