Kenya Airways emerges as top gainer on Nairobi Securities Exchange a day after 5-year suspension is lifted

Kenya Airways (KQ) stocks have surged a day after the national carrier was admitted to the Nairobi Securities Exchange (NSE) following a five-year freeze.

Data from the Nairobi bourse on Wednesday, January 8, 2025, placed KQ shares on top of the chart, recording a 9.93 per cent jump.

NSE explained that each KQ security traded at Ksh4.33 previously before recording a Ksh0.43 jump to a sale at Ksh4.76 on Wednesday, January 8, 2025.

The upswing was far better than the positive gain recorded by Kenya Power, Olympia, Britam and Sameer in the Nairobi Securities Exchange.

Before the suspension was imposed in July 2020, KQ stocks traded at 3.83 per share at the Nairobi Securities Exchange.

However, the latest data signalled a swelling demand for KQ securities just a day after earning its admission to the Nairobi bourse. This was mainly attributed to its return to profitability.

In the year ending December 2023, Kenya Airways recorded an operating profit of Ksh10.5 billion, the first since 2017. The significant gain was high compared to an operating loss of Ksh5.6 billion in 2022.

In the Nairobi bourse chart, only Kenya Power (Ksh6.98) and Britam (7.06) were among the top daily gainers whose shares were costly compared to KQ’s.

Lifting of Suspension

The national carrier was readmitted to NSE on Monday, January 6, 2025, after returning to profitability. Besides the profit margins, NSE attributed its decision to the withdrawal of the National Aviation Management Bill 2020 which sought to give powers to the national carrier to realign its operations with the help of the government.

“Notice is hereby given of the lifting of the suspension in the trading of Kenya Airways Pic securities, effective January 5, 2025.

“The suspension on the trading of Kenya Airways PLC shares was lifted following the company’s recent performance which saw the company record a profit after tax and the withdrawal of the National Aviation Management Bill 2020,” NSE announced.

Its readmission was also okayed by the Capital Markets Authority (CMA).

The suspension was imposed after KQ almost sank into insolvency which was occasioned by massive losses and debts.

A meeting by stakeholders and Capital Markets Authority recommended the suspension of the shares as most investors shied away from the airline securities whose future was not clear back in 2020.

Kenya Airways emerged as the top gainer of the day, posting an impressive 9.93% increase to close at Kes. 4.76. Other companies that featured among the day's top gainers include:

Kenya Power and Lighting Company
Olympia Capital
Britam
Sameer Africa PLC@BritamEA… pic.twitter.com/WtwCxJPfxL

— NSE PLC (@NSE_PLC) January 8, 2025