Investors Cheer Kenya Airways Return To Nairobi Stock Market

Kenya Airways return to the Nairobi Securities Exchange this week has prompted a bullish response from investors.

Shares in the national carrier, which resumed trading on Monday after successive annual suspensions lasting about four-and-a-half-years, initially surged to a high of Sh6 4.6 US cents.

At Sh4.76 3.7 US cents per share at the close of trading on Wednesday, the total market value of the airlines outstanding shares, also known as the market cap, stood at Sh25.21 billion 193.67m.

The shares were initially suspended from trading in July 2020 after the government proposed a new law to nationalise the airline and rescue it from mounting debts amid the Covid-19-induced slump in global air travel. At the time, shares in the carrier were worth Sh3.83 3 US cents.

However, the nationalisation plan was shelved after the airline showed signs of recovery. Changes in government administration in 2022 also led to major policy shifts, with President William Ruto abandoning the nationalisation plan in favour of privatisation. These factors, coupled with the airlines recent return to profitability, paved the way for its relisting on the bourse this week.