The Nairobi Stock Exchange (NSE) has suspended the trading of Kenya Airways shares trading for three months to allow for internal corporate restricting and government take over.
In statement shared to newsrooms on Friday morning, the NSE reported that Kenya Airways had made an application for the suspension.
Further, this means that the share register will be closed until an agreement of its future is known.
“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,” said NSE.
“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.”
The airline which has been making losses, has the government as the majority shareholder at 48.9 percent and Air France KLM at 7.8 percent. It was privatised 24 years ago but went down with debt and losses in the 2013-2014 period.
Air France KLM has since made a decision to exit despite the option of selling its stake to the state on staying as a technical adviser.
Since the Covid-19 pandemic, the national carrier has been operating only cargo flights for essential such as medicine, however it is looking forward to the resumption of passenger air travel.