(3 minutes read)
The Nairobi Securities Exchange announced that trading in Kenya Airways shares was suspended for another year to enable the company to complete its operational and corporate restructuring process
The Nairobi Securities Exchange announced that trading in Kenya Airways shares was suspended for another year to enable the company to complete its operational and corporate restructuring process. Kenya Airways shares were first suspended in 2020 as lawmakers were considering a plan for the state to take full ownership of the carrier. However, this plan was dropped later. The government’s stake in the national airline is 48.9 percent. It has pumped millions of dollars to keep the airline artificially alive.
The bottom line of the company since 2012 has been pretty bad, continuously incurring losses. Last month also, the IMF announced a US$ 447 million loan for the east African country under a program aid programme. The Fund highlighted the vulnerabilities of Kenya Airways and the public utility Kenya Power. The Fund underscored the need for urgentrestoringion to restore both organizations to a healthy benchmark. Importantly, pilots of the beleaguered airline resorted to strike in November last year, crippling the air traffic in the country, despite the court order not to do so.
Read Also:
https://trendsnafrica.com/kenya-airways-new-york-flight-is-daily-now/
https://trendsnafrica.com/kenya-introduces-regulations-to-facilitate-fuel-imports/
https://trendsnafrica.com/kenya-renews-its-thrust-to-ban-imports-of-hazardous-materials/
Kenya Airways was founded in 1977 following the closure of East African Airways. It now flies more than four million passengers and connects 42 destinations annually. Most of the African airlines, except Ethiopian, are running in losses. This has forced many countries to re-strategize their operations. They are intending to rope in the private sector in running such airlines. But not many suitors are coming out to bail the airlines out of their present state.
