Trading in Kenya Airways (KQ, Nairobi Jomo Kenyatta) shares has been suspended for another year until January 5, 2024, the Nairobi Stock Exchange announced, as the technically insolvent airline continues its restructuring with additional state support of KES34.9 billion shillings (USD283.2 million) this year.
"Notice is hereby given on the extension of suspension from trading of Kenya Airways Plc shares," NSE said in a statement. "The extension of suspension from trading the company's shares will remain in force for an additional twelve (12) months, with effect from January 5, 2023," NSE added.
Kenya Airways' shares have been suspended several times since July 2020. The last time the NSE extended the suspension for an additional nine months with effect from April 5, 2021. At the time, lawmakers debated a bill to renationalise the flag carrier, plans that have since been abandoned.
A restructuring action plan approved in June 2022 is currently being implemented, focused on fleet and network simplification, staff rationalisation, cost management, labour agreement overhauls, ancillary business and strategic partnerships.
The government will continue supporting Kenya Airways financially in FY2022/23 to prevent defaults for settlement of operating lessors' arrears and working capital support.
