KQ’s suspension at NSE extended for 12 more months
Kenya Airways' (KQ) suspension at the Nairobi Securities Exchange (NSE) has been extended by a further 12 months.
In a statement, NSE said the suspension of trading of KQ shares at NSE would allow the national carrier to complete its operational and corporate restructuring process.
"Notice is hereby given on the extension of suspension from trading of Kenya Airways Plc shares. The extension of suspension seeks to enable the company to complete its operational and corporate
restructuring process," NSE stated.
"The suspension was approved and issued by the Capital Markets Authority (CMA) pursuant to section 11(3) (w) of the Capital Markets Act and regulation 22 of the Capital Markets (Securities) Public Offers, Listings and Disclosures) Regulations, 2002."
The extended suspension will take effect on January 5, 2024.
"The extension of suspension from trading the company’s shares will remain in force for an additional
twelve months, with effect from January 5th, 2024. All shareholders, investors and the general public are asked to take note of the suspension," NSE added.
KQ shares suspended
The airline's shares at the bourse were first suspended in July 2020, when the government floated a plan to privatise the loss-making carrier.
The government of Kenya owns a 48.9 per cent stake in Kenya Airways while Air France-KLM has 7.8 percent. The rest is owned by private owners and banks.
Despite recording a 120 per cent improvement in operating profit from a loss of Ksh5 billion reported in 2022 to Ksh998 million operating profit in 2023, KQ's net loss widened to Ksh21.7 billion.
The airline's improved performance was negated by a Ksh 17 billion impact on foreign exchange losses on monetary items, loans and leases, giving rise to a loss before tax of Kshs 22 billion.
