Kenya Airways Trading Resumes On Nairobi Exchange, Ends Decade-long Profit Drought
- Kenya Airways resumed trading on the NSE after a five-year suspension, following improved performance and the withdrawal of renationalization plans.
- KQ's share price surged 9.88 to Ksh4.45 on resumption, raising its market capitalization to Ksh23 billion 178 million.
- KQ's net profit of Ksh513 million 4 million for H1 2024 signals a strong turnaround after years of financial struggles and COVID-19 setbacks.
Kenya Airways Plc KQ, one of Africa's largest airlines, has been readmitted to trading on the Nairobi Securities Exchange NSE after a five-year suspension. The move follows a period of financial difficulties for the national carrier, led by South African-born Kenyan businessman Michael Joseph.
The suspension, imposed in 2020 after the government announced plans to renationalize the airline, was lifted after those plans were abandoned. The NSE cited improved company performance and the withdrawal of the renationalization plan as key factors behind the reinstatement.
The suspension on the trading of Kenya Airways PLC shares was lifted following the companys recent performance, which saw the company record a profit after tax and the withdrawal of the National Aviation Management Bill 2020, the NSE noted.
Market reactionInvestors reacted positively to the news, driving KQ share price up 9.88 percent to Ksh4.45 0.0344 on its first day of resumed trading.
This represents a notable increase from its last traded price of Ksh3.42 0.026 on June 29, 2020, prior to the suspension. The surge boosted the airlines market capitalization to Ksh23 billion 178 million.