KQ’s suspension from NSE extended for another year

Wednesday, January 4th, 2023 10:07 | By
Nairobi Securities Exchange (NSE). PHOTO/Courtesy
Nairobi Securities Exchange (NSE). PHOTO/Courtesy

The Nairobi Securities Exchange (NSE) has announced that Kenya Airways' (KQ) suspension from the bourse will be extended for 12 more months.

The extension of the suspension, according to NSE, is aimed at helping the loss-making national carrier 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 complete its operational and corporate restructure 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 extension of suspension from trading the company’s shares will remain in force for an additional 12 months, with effect from January 5, 2023.

KQ losses

The company booked a half-year loss of Ksh5.3 billion on hedged foreign exchange differences. Jet fuel, which was the largest contributor of overheads in the half-year period ended June 2022 pushed overall operating expenses to Ksh53. 1 billion from Ksh34 billion.

KQ will receive Ksh34.95 billion ($283.7 million) in the government bailout programme for parastatals for the 2021/2022 and 2022/2023 financial years.

KQ, whose current debt burden stands at $835 million (Ksh102.82 billion), had by September 2022 received Ksh10 billion ($81.2 million) from the Treasury to help service its debts.

In its restructuring programme, the carrier is looking to reduce its fleet size by terminating some aircraft leases and eyes negotiations with operating lessors to cut its annual lease costs. 

KQ, according to reports, will also lay off staff to reduce staff costs. Other departments targeted in the restructuring process include operations and maintenance, distribution, ticketing, procurement, and fuel costs.

More on News