SUSPENSION

NSE suspends trading of Kenya Airways shares for three months

Its suspension was effected on July 3 and will remain in force for the next three months.

In Summary

• NSE said in a statement on Friday that Kenya Airways had applied for suspension of trading in its shares and closure of its register until the conclusion of its future is determined.

• Its suspension was approved and issued by the Capital Markets Authority (CMA).

Nairobi security exchange chief executive Geoffrey Odundo observing the daily tradings at the NSE headquarter
Nairobi security exchange chief executive Geoffrey Odundo observing the daily tradings at the NSE headquarter
Image: ENOS TECHE

The Nairobi Securities Exchange has suspended the trading of Kenya Airways for three months following imminent corporate restructure and a government buy-out.

This follows the publication of National Management Aviation Bill 2020.

Its suspension was effected on July 3 and will remain in force for the next three months.

NSE said in a statement on Friday that Kenya Airways had applied for suspension of trading in its shares and closure of its register until the conclusion of its future is determined.

Its suspension was approved and issued by the Capital Markets Authority (CMA).

The National Civil Aviation Council was established on June 18, comprising of the President who will be the chairperson, Transport CS, Treasury CS, Interior CS, Attorney General and the Kenya Air force Commander.

The council was mandated to integrate policies relating to aviation sector and the other sectors of the economy to enable all the national organs and the sectors of the economy requiring access and support of the civil aviation sector to cooperate and work with the sector to ensure the effective performance of its mandate.

It will also assess and appraise, the objectives, commitment and the risks to the country in respect of actual and potential civil aviation capabilities as well as determining its own procedure and the procedure for any committee of the Council and for attendance of any other persons at the meetings and shall appoint its secretary.

The bill also saw the establishment of the Kenya Aviation Corporation which shall be a body corporate with perpetual succession and a common seal.

The functions if the corporation will include holding shares in the Operating Entities, to oversee and where applicable manage the operations of the group including establishing centralised functions to be shared by the group and to promote the development of the Kenyan aviation sector and the group.

It will also advise the government on matters relating to the development of the Kenyan aviation sector and perform such other functions.

Management of the Corporation

There shall be a Board of Directors of the Corporation which shall be the governing body of the Corporation consisting of a chairperson appointed by the President, Attorney General or their representative and Treasury CS.

It will also comprise of Transport PS, KQ CEO and four independent non executive Board members appointed by the Cabinet Secretary.