The suspension of Kenya Airways (KQ) shares from
trading at the Nairobi Securities Exchange (NSE) has been extended for six more
This further extension of the suspension of KQ shares is effective from October 4, 2020 and has been approved by the Capital Markets Authority (CMA).
The move comes as the management of the national carrier is concluding on the restructuring of its operations ahead of a buyout by the government.
Renationalization of KQ is awaiting the adoption of the National Management Aviation Bill, 2020 which is undergoing public participation for a second time.
KQ shares were initially suspended from trading at the NSE on July 3 after the aviation management bill was published as the airline undergoes turbulent times.
The renationalisation of KQ caused a huge interest in the airline firm’s stocks with many investors betting on big bucks once the government buys it out.
The suspension by CMA is considered a standard practice meant to protect investors as companies undergo significant structural changes.
Once government buys it out, KQ is expected to fuse operations with Kenya Airports Authority (KAA) and operate under a new Kenya Aviation Corporation board.