This archive report was first published on 3 July 2020.
Kenya Airways shares have been suspended from trading at the Nairobi Securities Exchange for 90 days, following a successful application. The suspension was approved by the Capital Markets Authority and is part of the government's plan to nationalize the airline.
According to a statement from the Nairobi Securities Exchange Plc, the suspension is due to the company's operational and corporate restructure, as well as the government's buy-out of the airline. The National Management Aviation Bill 2020, which was published last month, has paved the way for the nationalization of Kenya Airways.
Kenya Airways has been struggling to return to profitability and growth, with a failed expansion drive and a slump in air travel forcing it to restructure $2 billion of debt in 2017. The airline is 48.9% government-owned and 7.8% held by Air France-KLM.
The National Aviation Management Bill, 2020 seeks to establish the National Civil Aviation Council, which will oversee the creation of a new outfit, Kenya Aviation Corporation (KAC), to run the national carrier. Kenya Aviation Corporation will also hold the shares in the operating entities, including Kenya Airways, Kenya Airports Authority, and Aviation Investment Corporation.
