The Nairobi Securities Exchange (NSE) has officially lifted its suspension on the trading of shares belonging to Kenya Airways PLC (KQNA.NR), marking a pivotal moment for the national carrier. This announcement was made on Monday and follows a series of positive developments in the airline’s financial and strategic position.
In its statement, the NSE cited the airline’s recent financial turnaround as a key reason behind the decision. Kenya Airways recently recorded a profit after tax, a significant milestone given the prolonged financial turbulence the company has faced in recent years. Additionally, the withdrawal of the National Aviation Management Bill 2020—legislation that had initially set the stage for the government to take full control of the airline—was also instrumental in clearing the path for the return of KQ shares to the trading floor.
Kenya Airways’ stock had been suspended from trading since March 2020. At the time, the government had announced plans to renationalise the carrier as part of a broader restructuring strategy to save the ailing airline. However, those plans were never fully implemented, leaving the company in a sort of legal and operational limbo for several years.
Founded in 1977 and currently recognized as one of Africa’s top three airlines, Kenya Airways has endured a turbulent financial history. The airline first fell into insolvency in 2018 following an ambitious but ultimately overextended growth strategy that saddled the company with substantial debt obligations amounting to hundreds of millions of U.S. dollars.
Prior to the suspension, on its last day of trading on March 2, 2020, Kenya Airways’ shares closed at 3.83 Kenyan shillings per share.
The decision to reinstate trading comes at a time of renewed optimism for the airline. Kenya Airways posted an operating profit of 10.53 billion Kenyan shillings (approximately $80.38 million) in 2023—the first such profit since 2017. This achievement signals a potential recovery for the airline, thanks to a combination of increased passenger demand, improved operational efficiencies, and strategic cost management.
Market analysts and investors will now be closely watching the stock’s performance as it reenters the exchange, viewing it as a litmus test for the company’s long-term viability and investor confidence in Kenya’s aviation sector.
