NAIROBI, Kenya Jan 5 – The Capital Markets Authority( CMA) has extended the suspension of shares of Kenya Airways (KQ) from trading at the Nairobi Securities Exchange (NSE) for 12 months ‘effective January 5th 2022.
This follows the announcement by President Uhuru Kenyatta of a possible merger between the national carrier and South African Airlines.
“The company’s operational and corporate restructure is still ongoing and the Government is expected to give a clear direction on its buy-out or bail-out,” The statement reads.
While addressing Kenyans in his New Year’s message, President Uhuru Kenyatta said the Pan African airline will have unmatched continental reach and global coverage.
“To boost tourism, trade, and social engagement; and to bolster continental integration; our national carrier Kenya Airways will join hands with our partners in South Africa to establish a Pan-African Airline with unmatched continental reach and global coverage,” President Kenyatta said.
In November, KQ signed a Strategic Partnership Framework with South African Airways to foster the exchange of knowledge and expertise in a bid to start a Pan African Airlines Group by 2023.
The signing of the Strategic Partnership Framework by the two African airlines will see both airlines work together to increase passenger traffic, cargo opportunities, and general trade by taking advantage of strengths in South Africa, Kenya, and Africa.
The merger deal comes at a time when Kenya Airways is fresh from making losses.
In the period ending in June 2021, the cash strapped national carrier posted Sh11.48 billion in net loss, marking a 19.8 percent drop from the Sh14.33 billion loss posted in a similar period in 2020.
The South African national has also been struggling, having only emerged from bankruptcy early this year.