Nairobi Securities Exchange (NSE) has further extended the suspension of Kenya Airways by 12 months. NSE says “operational and corporate restructure is still ongoing and the government is expected to give a clear direction on its buy-out or bail-out.”
“The suspension was approved and issued by the Capital Markets Authority (CMA) pursuant to section 11(3) (w) of the Capital Markets Act and regulation 22 of the Capital Markets (Securities) (Public Offers, Listings and Disclosures) Regulations, 2002,” said NSE.
KQ shares were initially suspended from trading on NSE in July 2020 after Parliament began to review the National management Aviation Bill, 2020 that would lead to the establishment of Kenya Aviation Corporation, a holding company that will house Kenya Airways, National Aviation Council, and Kenya Airports Authority.
The suspension was extended for nine more months in April 2021. The Kenyan government owns a 48.9 percent stake in KQ, while Air France-KLM owns 7.8 percent.
In December, National Treasury Secretary Ukur Yatani said the government plans to take over KSh93.4 billion of the national carrier’s debt owed to suppliers.
It will also give the airline 53.4 billion shillings in direct budget support in the fiscal year that ends in June 2022 as well as the subsequent one.