This archive report was first published on 3 July 2020.
Kenya Airways, the country's national carrier, has been struggling to return to profitability and growth. The airline has been facing significant debt and has been forced to restructure $2 billion of debt in 2017 to save it from collapsing.
On May 5, 2020, the Nairobi Securities Exchange (NSE) suspended trading of Kenya Airways shares after a successful application by the company. The suspension was approved by the Capital Markets Authority and will be in place for three months.
According to the NSE, the suspension is due to the company's operational and corporate restructure, which is now imminent following the publication of the National Management Aviation Bill 2020 last month.
Kenya Airways is 48.9% owned by the government of Kenya and 7.8% held by Air France-KLM. The airline has been struggling to return to profitability and growth, and the government has proposed nationalizing the airline to save it from debt.
Transport Committee in the national assembly, led by Pokot South MP David Pkosing, recommended the nationalisation of Kenya Airways after failed attempts to revive it. The committee proposed the formation of a board where the government would have a majority stake, and the airline would be managed by a new entity, Kenya Aviation Corporation (KAC).
Under the proposed National Aviation Management Bill, 2020, KAC would oversee and manage the operations of the group, including promoting the development of the Kenyan aviation sector and advising the government on matters relating to the sector.
