Kenya Airways Stock Down 5 Percent, Company Completes Debt Restructuring

Kenya Airways recorded a 4.50% drop in its share price on the Nairobi Securities Exchange, as the stock closed at KES 5.30.

The counter moved 758,100 shares for a turnover of KES 4.02 million.

The NSE suspended trading of Kenya Airways shares for two weeks to allow the listing of additional shares created in the restructuring.

The financial restructuring diluted all existing shareholders by 95%.

Kenya Airways is set to brief investors on the first half of its financial year on Friday.

Company completes debt restructuring

Kenya Airways has finished restructuring $2 billion of debt, the carrier said on Wednesday, completing a key part of its turnaround plan after heavy losses.

The airline’s top shareholder, the Kenyan government, and 11 local lenders converted the bulk of their debts into shares, helping to relieve cash flow pressure.

“This has been a $2 billion restructuring,” Mbuvi Ngunze, the former Kenya Airways CEO who has been advising on the transaction since June, told Reuters.

That figure includes full commitments to financiers and operating aircraft leasing companies, which are not normally reflected in the balance sheet, he said.