Kenya Airways (KQ, Nairobi Jomo Kenyatta) is evaluating delisting from the Nairobi Securities Exchange (NSE) in order to increase its agility and improve the financial standing, CEO Sebastian Mikosz has told Citizen TV. The move is not, however, a priority for the airline.
Mikosz repeatedly complained in the past, including in an interview with ch-aviation, that by being the sole publicly traded large airline in the region, Kenya Airways is more rigid and subject to additional regulatory burdens in comparison to its competitors.
Neither Ethiopian Airlines nor any of the Gulf carriers, which Kenya Airways sees as the main competitors, are listed at a stock exchange.
Mikosz said that a decision is not expected any time soon. The priority for the company is currently the finalisation of a public-private partnership (PPP) which would see Kenya Airways taking control of its gateway Nairobi Jomo Kenyatta.
"This is part of the discussion that might happen during or after the PPP, that’s always something to think about, what’s the added value of being listed or not being listed but I guess this is a more complicated and broader decision than just the partnership. The fact of being listed or not might be a consequence but at this stage it’s not a priority,” Mikosz said during the interview.
Kenya Airways is currently majority owned by the government. It directly controls a 48.9% stake, while a further 38.1% is owned by KQ Lenders Company, a consortium of the government and 11 local banks which financed the airline in a swooping debt-for-equity deal in 2017. The remaining shares are split between KLM Royal Dutch Airlines, which holds a 7.8% stake, and local diversified stockholders.
