This archive report was first published on 4 July 2020.
Kenya Airways (KQ) shares have been suspended from trading at the Nairobi Securities Exchange (NSE) following the commencement of plans to privatize the carrier. The tabling of the National Management Aviation Bill 2020 in Parliament last week set the stage for KQ's shareholding to revert to government.
The Government has a 48.9 per cent stake in the carrier, while another 38.1 per cent is owned by a consortium of local banks through the KQ Lenders Company 2017 Ltd. Air France-KLM has a 7.8 per cent shareholding.
Following the tabling of the bill, KQ had requested its shares be suspended from trading. The company's operational and corporate restructuring, as well as the government buy-out, is now imminent.
According to the NSE, the company's shares have been suspended from trading following the tabling of the National Management Aviation Bill 2020. The approval was made by the Capital Markets Authority.
As a result, the price of Kenya Airways shares has been going up as investors bought the share in anticipation of being bought out by the Government at a premium. The share traded at Sh3.83 on Thursday, up from Sh2.79 on June 19.
Kenya Airways has been pushing for nationalisation, which its leaders argue is the only way for it to survive. The carrier last made a profit in 2012.
