This archive report was first published on 3 July 2020.
On July 7, Kenya Airways found itself suspended from trading its shares at the Nairobi Securities Exchange, a move that came ahead of its buyout by the government. The suspension, which will last for three months, is pending Parliament's deliberation on the National Aviation Management Bill 2020.
The bill, tabled in Parliament on June 18, 2020, outlines the government's plan to buy out minority shares at the airline from individual shareholders, Air France KLM, and local banks.
According to a statement from the National Securities Exchange (NSE), the suspension was approved by the Capital Markets Authority, citing 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 company’s operational and corporate restructure and Government buy-out is now imminent following the publication of the National Management Aviation Bill, 2020, on 18th June 2020,” said NSE.
Kenya Airways is majorly owned by the government at 8.9 percent, 38.1 percent by local banks, 7.8 percent by Air France-KLM, and the rest by individual shareholders including KQ employees.
