This archive report was first published on 22 April 2020.
Kenya Airways' share price plummeted to Sh0.97 on April 22, 2020, marking a 6.73 percent decline from the previous day at the Nairobi Securities Exchange (NSE).
The national carrier's market capitalization dropped to Sh5.57 billion, down from Sh5.9 billion the previous day, resulting in a loss of Sh31 million.
Analysts attribute the decline to concerns over revenue generation, as the global airline industry struggles with the COVID-19 pandemic.
"Globally, a number of airlines are struggling. KQ revenues are expected to drop, and hence investors are selling stocks," said AIB Capital head of research Sarah Wanga.
"Investors are still waiting on a clear indication on the nationalization plan," she added.
Churchill Ogutu, head of research at Genghis Capital, noted that the stock has been trading on a speculative basis, with negative sentiment elevated by international travel restrictions and local containment measures.
