After a five-year hiatus, Kenya Airways (KQ) has resumed trading on the Nairobi Securities Exchange (NSE), marking a significant milestone for the national carrier. The suspension, which began in July 2020, was lifted on January 5, 2025, following a series of positive developments for the airline.
The suspension was initially imposed due to severe financial difficulties exacerbated by the COVID-19 pandemic. The Kenyan government had proposed renationalizing the airline to stabilize its operations, but this plan was eventually abandoned. Instead, Kenya Airways embarked on a rigorous recovery path, which included cost-cutting measures, debt restructuring, and strategic partnerships.
In the first half of 2024, Kenya Airways reported a net profit of KSh 513 million, its first profit in a decade. This financial turnaround played a crucial role in the decision to lift the suspension. The NSE, in its announcement, highlighted the airline’s improved performance and the withdrawal of the National Aviation Management Bill 2020 as key factors.
The resumption of trading has been welcomed by over 75,000 individual shareholders who own 2.8% of Kenya Airways through the stock market. The airline’s share price, which closed at KSh 3.83 per share before the suspension, saw a positive uptick upon resumption, reflecting renewed investor confidence.
Kenya Airways, known for its slogan “The Pride of Africa,” operates flights to 45 destinations and serves over five million passengers annually. Despite its achievements, the airline has long struggled with a heavy debt burden, which multiple government bailouts and strategic partnerships have sought to alleviate.
While the resumption of trading is a positive step, analysts caution that Kenya Airways still faces significant challenges, including market competition and operational inefficiencies. However, with a clear path forward and improved financial standing, the airline’s leadership aims to restore its position as a leading player in African aviation.
For investors and stakeholders, the return to the NSE offers a renewed opportunity to participate in the future of one of Africa’s most iconic carriers. The question now is whether Kenya Airways can sustain its momentum and fully capitalize on its recent gains to secure long-term stability.
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