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Kenya Airways shares fell sharply on Wednesday after the airline posted a KSh 12.15 billion half-year loss for the six months ended June 2025, its third-largest interim loss on record.
- •The stock closed the session at KSh 4.00 on the NSE, a 19.8% drop from the previous day’s KSh 4.99.
- •Shares momentarily fell to KSh 1.56, the lowest level since May 2020, before partially recovering.
- •KQ shares had been suspended from trading on July 3, 2020, as the government pursued a nationalisation plan and corporate restructuring.
The suspension lasted nearly five years. Trading made a resumption on January 6, 2025, after the proposal was withdrawn and regulators cleared the stock for re-entry.
The resumption coincided with improved financial performance in 2024, when the airline briefly returned to profit.
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Investor Reaction
The selloff reflects heightened investor concern over the airline’s deteriorating fundamentals. Despite a year-to-date gain of 4.44% from its opening share price of KSh 3.83, Kenya Airways has lost 22% of its value in the past four weeks.
The half-year results showed revenue falling 19% to KSh 74.5 billion as grounded Dreamliners, spare parts shortages, and reduced capacity weighed on operations.
Company Outlook by CEO
CEO Allan Kilavuka said one of the three grounded Dreamliners returned to service in July, with the rest expected back before year-end.
He added that the airline plans to finalise a capital raise of at least US$ 500Million (KSh 64.5Billion) by early 2026 to stabilise liquidity and fund fleet expansion.
“Our focus remains on restoring aircraft availability, containing costs, and pursuing strategic investment to strengthen our financial footing and support long-term growth.”
He noted.