Kenya Airways has been suspended from trading at the Nairobi Securities Exchange paving way for the re-nationalisation of the airline.
“Notice is hereby given on the suspension from trading of Kenya Airways Plc shares. The company’s operational and corporate restructure and government buy-out is now imminent following the publication of the National Management Aviation Bill, 2020 on 18th June 2020,” a public Notice by by the Nairobi Securities Exchange said on Friday, July 3.
This follows KQ’s application of suspension of its trading in its shares until its future is determined and approval by the Capital Markets Authority.
The suspension starts on July 3 and will be in place for three months.
The Bill that will guide the sale of Kenya Airways to the State was tabled in Parliament last Thursday, setting the stage for the buyout of minority shareholders at a premium and converting shares held by banks into Treasury bonds.
The loss-making airline, which is 48.9 per cent government-owned and 7.8 per cent held by Air France-KLM, was privatised 24 years ago but sank into debt and losses in 2014.
In July last year, MPs voted to accept a proposal to nationalise KQ as a way of rescuing it from mounting debts.