This archive report was first published on 3 July 2020.
The Nairobi Securities Exchange (NSE) has suspended trading of Kenya Airways shares, paving the way for a government buy-out. The suspension, which took effect on July 3, 2020, will remain in place for three months.
According to the NSE notice, the suspension is a result of the imminent government buy-out following the publication of the National Management Aviation Bill, 2020, on June 18, 2020. The bill aims to establish the Kenya Aviation Corporation, which will spearhead Kenya's aviation sector development.
Under the National Management Aviation Bill of 2020, the National Government will acquire 100% of Kenya Airways, including its assets, liabilities, workers, licenses, and rights. The state-owned enterprise will replace Kenya Airways Plc at the NSE, with an initial share capital worth KSh 7,482,345,174 divided into ordinary shares worth KSh 10.
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