The trading ban was lifted on Monday, marking a big win for the national airline.
This suspension kicked off in July 2020 when the Kenyan government proposed to renationalize the struggling airline due to the massive impact of the Covid-19 pandemic on global air travel.
Eventually, the plan to fully bring the airline back under government control was scrapped, allowing Kenya Airways to start its recovery journey.
The Nairobi Securities Exchange confirmed the news, stating, “Notice is hereby given of the lifting of the suspension… effective January 5, 2025.”
This decision followed the withdrawal of the nationalization proposal, which had worried investors. Additionally, Kenya Airways’ impressive financial turnaround in 2024 was a major factor in this move. For the first time in ten years, the airline reported a net profit of KSh 513 million in the first half of 2024, indicating a hopeful recovery after years of financial struggles.
The lifting of the suspension has opened the door for over 75,000 individual shareholders, who collectively own 2.8% of Kenya Airways through the stock market. This is great news for many who have been eager to see their investments flourish after a long period of uncertainty.
Kenya Airways, famously known as “The Pride of Africa,” was founded in 1977 following the dissolution of East African Airways. Nowadays, it flies to 45 destinations and caters to more than five million passengers each year. Despite these accomplishments, the airline has been weighed down by significant debt, prompting several government bailouts and strategic partnerships to help ease the burden.
The ownership structure of the airline highlights its unique blend of national pride and commercial interests. The Kenyan government owns 48.9% of the airline, while Air France-KLM holds 7.8%. Importantly, around 75,000 individual investors own 2.8% of the airline through the stock market, showcasing its status as a publicly traded company with strong national connections.
While the restart of trading is a positive development, analysts warn that Kenya Airways still has a lot to tackle, including stiff competition and operational challenges. Nevertheless, with trading back on track and a clearer direction ahead, the airline's leadership is looking to use its improved financial situation to reclaim its status as a top player in African aviation.
For investors and stakeholders, the return to the NSE brings a fresh chance to engage with one of Africa’s most renowned airlines. The big question now is whether KQ can keep up its momentum and make the most of its recent progress to achieve lasting stability.