KQ Shares Resume Trading on the NSE After Five-Year Suspension
The trading of Kenya Airways (KQ) shares on the Nairobi Securities Exchange (NSE) resumed on Monday morning, marking the end of a five-year suspension. The markets regulator lifted the freeze following significant improvements in the airline’s performance and the withdrawal of plans to nationalize the carrier.
The NSE attributed the resumption to KQ’s remarkable turnaround, which saw the airline post a net profit of KSh 513 million in the first half of 2024—the first profit recorded in over a decade. Additionally, the withdrawal of the National Aviation Management Bill 2020, which sought to re-nationalize the airline, played a key role in this decision.
“The suspension on the trading of Kenya Airways PLC shares was lifted following the company’s recent performance which saw the company record a profit after tax and the withdrawal of the National Aviation Management Bill 2020,” stated the NSE in a notice.
Performance Turnaround
Kenya Airways has made significant strides toward recovery. In 2023, the company ended a 10-year streak of losses, primarily due to a reduction in finance costs. The government, which holds a 48.9% stake in the airline, absorbed KSh 83 billion in loans to support KQ’s restructuring plan.
The national carrier’s last trading day before the suspension in July 2020 saw shares close at KSh 3.83. The suspension initially aimed to provide time for legislative review of the National Aviation Management Bill, which proposed re-nationalizing the airline under the Kenya Aviation Corporation.
Shareholding Structure
Kenya Airways’ shareholding composition highlights its diverse ownership:
- Government of Kenya: 48.9%
- KQ Lenders Company 2017 Limited: 38.09% (including Equity Bank, KCB Group, Cooperative Bank, and others)
- Dutch Airline KLM: 7.8%
- Kenya Airways Employees: 2.44%
- Individual Investors: About 75,000 shareholders collectively own 2.8%.
Looking Ahead
The resumption of trading is expected to rekindle investor interest in Kenya Airways and test market confidence in the national carrier’s recovery strategy. While challenges remain, the airline’s improved financial performance and restructuring efforts signal a promising future.
As trading resumes, all eyes will be on Kenya Airways to see how it sustains this momentum and capitalizes on its newfound profitability. This moment represents a pivotal chapter in the airline’s journey toward stability and growth.
Stay tuned for more updates on the performance of KQ shares and developments in Kenya’s aviation sector.
