Trading of Kenya Airways shares at NSE suspended

Written By: Regina Manyara
193

Nairobi Securities Exchange (NSE)

Trading of Kenya Airways shares at the Nairobi Securities Exchange has been suspended beginning Friday to pave way for corporate restructure and government buy out, in the backdrop of the publication of the National Management Aviation Bill 2020 in June.

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The suspension which has been approved by the Capital Markets Authority (CMA) will last for a period of 3 months.

Kenya Airways share price has gone up 31 per cent in value; a week after a proposed law seeking to collapse it into an Aviation holding company was tabled Parliament.

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According to the proposed law KQ, Kenya Aviation Authority and Aviation Investment Corporation will be subsidiaries in Kenya Aviation Corporation, the proposed holding firm.

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The main agenda of the holding company is to improve the competitiveness of the Kenyan aviation sector.

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Consequently, the company has applied for suspension of trading in its shares and closure of its register until the resolution of its future is determined.

In the meantime, the national carrier plans to resume domestic and international passenger flights as soon as travel ban imposed since March 22 is lifted.

However this is dependent on  the adoption of aviation safety protocols put in place by the Kenya Civil Aviation Authority to stem  the spread of COVID-19.

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Kenya Airports Authority is currently inspecting four main airports to ascertain their level of preparedness.

Ag. Managing Director Alex Gitari, says the airports are ready to commence operations having integrated over 200 measures to ensure safety of passengers and crew during the COVID-19 pandemic.

Passengers and staff are expected to adhere to the set protocols to ensure their health safety.

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