Kenya Airways has been cleared to resume trading on the Nairobi Securities Exchange effective from January 5, 2025, more than four years after its shares were suspended.
The exchange says this follows the airline’s “recent performance, which saw the company record a profit after tax.” It also mentions the withdrawal of legislation drawn up in 2020 that sought to create a framework under which the carrier would be nationalized.
This National Aviation Management bill envisioned establishing a holding corporation for entities including Kenya Airways and the Kenya Airports Authority. It intended to address the financial burden on Kenya Airways – increased debt and annual losses – which were obstructing its competitive potential.
Kenya Airways disclosed in August last year that it had achieved a post-tax profit for the half-year to 30 June 2024 – its first in more than 10 years. It attributed the performance improvement to its Project Kifaru turnaround plan.
Chairman, Michael Joseph had stated at the time that the company was “committed” to completing a capital restructuring plan to reduce leverage and increase liquidity. “This will provide Kenya Airways with a stronger foundation for long-term growth and stability,” he added.
The suspension was initially imposed in 2020 amid the former government’s proposal to renationalise the airline, a plan that was later abandoned.
The stock initially surged by 10%, but later dipped 9.9% to trade at KES 3.45 ($0.027) by mid-morning.
