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After five years of being in the cold, the Nairobi Securities Exchange (NSE) has lifted the trading suspension imposed on national carrier, Kenya Airways.

In a statement on Monday, January 5, 2025, the bourse announced the readmission of Kenya Airways to the shares trading after returning to profitability.

Kenya Airways shares were suspended from trading in 2020 after the government announced plans to renationalise the airline. This was followed by the tabling 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.

However, in a statement, Kenya Airways announced that the readmission of Kenya Airways followed the withdrawal of the National Aviation Management Bill 2020.

“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.

NSE further explained that lifting the suspension followed the approval of the Capital Markets Authority and notified all shareholders of the new development.

“The lifting of the suspension was approved by the Capital Markets Authority pursuant to section 11(3)(w) and Section 22A of the Capital Markets Act (Chapter 485A).

“All shareholders, investors and the general public are advised to take note of the lifting of the suspension in the trading of Kenya Airways Plc shares,” NSE explained.

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

The suspension was lifted following the company’s recent performance and the withdrawal of the National Aviation Management Bill 2020.@CMAKenya… pic.twitter.com/KFLwUo3lgB

— NSE PLC (@NSE_PLC) January 6, 2025

Suspension

KQ was suspended after the government mooted the plan to nationalise the airline. This was after the airline slid into insolvency in 2018 due to debts that had accumulated.

At that time, Kenya Airways was also recording losses after losses raising concerns among stakeholders and the government.

After evaluating the situation, NSE suspended KQ shares from trading after receiving a nod from the Capital Markets Authority.

“Kenya Airways Plc (KQ) has applied for suspension of trading in its shares and closure of register, effective from 3 July 2020, for a period of three calendar months.

“Following the tabling of the Kenya Aviation Management Bill 2020 in Parliament on June 18, the price of Kenya Airways shares went up as investors bought the shares in anticipation of being bought out by the government at a premium. The COVID-19 pandemic and the prospect of a Government Buy-Out may also have created a buyer’s market, as share prices were at an all-time low,” Kenya Airways said in a statement issued on July 10, 2020.

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, representing a 287 per cent growth.