Trading of shares in the listed national carrier Kenya Airways (KQ) on the Nairobi Securities Exchange (NSE) resumed on Monday morning after the markets regulator lifted a five-year freeze.
- The lifting of the suspension, the NSE says, is on the back of the withdrawal of a proposal to nationalise the airline, as well as its improved performance.
- In the first half of 2024, KQ swung back into profit for the first time in a decade, posting a net profit of KSh 513 million.
- About 75, 000 individuals collectively own 2.8% of the national carrier through the stock market.
“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.
KQ’s share price closed its last trading day before the first suspension at KSh 3.83 per share in July 2020.
Last year, the national carrier ended a 10 year loss making streak, which it attributed to a reduction in finance costs. The government, which is the principal shareholder, has taken taking over KSh 83 billion in loans to buoy the company’s restructure plan.
Kenya Airways share 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-nationalize the national carrier through the establishment of the Kenya Aviation Corporation.
In 2023, trading of Kenya Airways (KQ) shares was frozen at the Nairobi bourse for a further 12 months to give the carrier more time to complete the operational and restructure 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%.
