Kenya Airways’ (KQ) suspension at the Nairobi Securities Exchange (NSE) has been extended for an additional nine months from April 5, 2021.
In a statement, NSE said KQ is yet to finalise its operational and corporate restructure for the eventual Government buy-out, following the publication of the National Management Aviation Bill, 2020, on June 18, 2020.
“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,” read a statement from the NSE.
Kenya Airways had applied for the suspension of trading in its shares and closure of its register until the resolution of its future is determined.
The company has been making losses for the last six years, and the government is now mooting a nationalisation plan to turn things around.
KQ is 48.9 per cent owned by the government and a group of 10 local banks that hold 38.1 per cent of its shares.
Under the nationalisation plan, KQ will be a subsidiary of an aviation company alongside Jomo Kenyatta International Airport, an aviation college and Kenya Airports Authority, which will operate all other airports.
KQ recorded a Ksh36.6 billion after-tax loss for the financial year ending December 2020, the worst in the airline’s history. The loss is attributed to the impact of Covid-19 pandemic.