Kenya flag carrier’s shares will be suspended from trading for a further 12 months, extending the period the company’s stock is halted to more than three years as it struggles to return to profit.
The suspension has been in place since July 2020 to allow the company complete its operational and corporate restructuring process, the Nairobi Securities Exchange said in an emailed statement on Wednesday.
Kenya Airways Plc, which is 48.9% state-owned, had been reporting losses even before the Covid-19 pandemic in early 2020 prompted it to ask for bailouts from the government. It defaulted on a $525 million loan from the US Export-Import Bank last year, forcing the administration to take over the payment of the debt it had guaranteed.
Authorities have moved from trying to nationalize the carrier to President William Ruto saying last month Kenya is prepared to sell its entire stake in the airline. A pilots strike in November disrupted travel plans for thousands of passengers and hurt intra-Africa trade.
(Source: Bloomberg)