Kenya Airways Resumes Stock Trading After Five-Year Break

Kenya Airways returns to active trading on the Nairobi Securities Exchange (NSE) after a five-year suspension. This marks a significant step for the airline, which halted trading in 2020 during efforts to address financial struggles and operational challenges exacerbated by the COVID-19 pandemic.

The NSE announces the resumption of trading, effective January 5, 2025, following improvements in the airline’s financial performance. In 2024, Kenya Airways records a net profit of KSh 513 million in the first half, its first profit in ten years. This financial turnaround influences the decision to re-list the airline and signals progress in its recovery journey.

The return to trading reopens opportunities for over 75,000 individual shareholders who collectively own 2.8% of the airline. These shareholders now have renewed prospects for their investments after years of uncertainty.

Kenya Airways, established in 1977 following the collapse of East African Airways, operates flights to 45 destinations, serving more than five million passengers annually. Despite its strong reputation, the airline has grappled with substantial debts, relying on government bailouts and strategic partnerships to remain afloat.

The airline still faces competitive pressures and operational inefficiencies. However, its leadership aims to leverage the resumption of trading and its improved financial health to solidify its position in African aviation.

With 48.9% of the airline owned by the Kenyan government, 7.8% by Air France-KLM, and the remaining shares distributed among private investors, Kenya Airways embodies a unique blend of national and commercial ownership.

While the reinstatement on the stock exchange offers hope, the airline must sustain its momentum to achieve long-term stability. Investors and stakeholders are closely watching as Kenya Airways seeks to maintain its role as a major player in the aviation sector.