Kenya Airways has on Friday July 3, been suspended from trading at the Nairobi securities exchange.
In a notice by the Nairobi securities exchange, the suspension has been occasioned by the imminent government buy out of the airline following the publication of the National Management Aviation Bill 2020 mid June 2020.
The notice also notes that KQ has applied for the suspension of trading until the future and direction the airline is taking is clear.
“… Consequently, the company has applied for the suspension of trading in its shares and closure of its register until the resolution of its future is determined”, part of the notice read.
The suspension of trading in shares takes effect Friday July 3, and will remain in force for a period of three months.
The Kenya Government is set to acquire 100% of Kenya Airways, its assets, liabilities, rights, legal cases, licenses and employees with minority shareholders who were already diluted in the restructuring in 2017 expected to be bought for a sum about kshs. 800 million.
Commercial banks that became shareholders in the restructuring will be issued with Treasury bonds.
The airline has been ailing for years now, and despite several bail outs by the government, it has continued to report losses in the tune of billions.
In 2019 Kenya Airways reported a gross loss of 12.98 billion, a 71 per cent further drop compared to Sh7. 55 billion loss the previous year.