KQ Woes: Nairobi Securities Exchange Extends Suspension Of Kenya Airways Shares

• Nairobi Securities Exchange (NSE) extended the suspension from trading of Kenya Airways PLC shares
• The suspension, issued in July 2020, will remain in force for the next 12 months, beginning January 1, 2024
• NSE said the move is aimed at enabling the airline to complete its operational and corporate restructuring process

TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

Kenya Airways PLC share trading will remain suspended for the next 12 months, beginning January 1, 2024.

Nairobi Securities Exchange (NSE) extended the suspension from trading of Kenya Airways PLC shares, which was first issued in 2020.

How long has KQ share trading been suspended?

KQ applied for the suspension of its share trading on July 3, 2020, for a period of three calendar months.

However, the suspension continued for more than a year to allow the national carrier time to complete its restructuring process.

"The extension of the suspension seeks to enable the company to complete its operational and corporate restructuring process," NSE said in a public notice dated January 2, 2024.

In 2023, the Nairobi bourse extended the suspension from trading of KQ shares, approved by the Capital Markets Authority (CMA) for a similar course.

Why is NSE extending suspension of KQ share trading?

The announcement came against Kenya Airways CEO Allan Kilavuka who maintained that KQ will be back to profit course in 2024.

Kilavuka said the airline plays a significant role in the country's economy.

He acknowledged KQ's 4% contribution to Gross Domestic Product (GDP), saying it can be improved if given enough time and support.

Kenya Airways loss

However, in 2023 the airline reported a 120% net loss in its half-year financial results.

The national carrier suffered a KSh 21.7 billion loss for the six-month period compared to KSh 9.8 billion reported during a similar period in 2022.

The company reported an operating profit of KSh 998 million for the first time in six years. This is a 120% growth up from a loss of KSh 5 billion reported for the same period in 2022.