Kenya airways has adviced its investors and shareholders to take caution while dealing with the company’s share at the naoirobi stock exchange. The chairman of the board michael joseph in a letter addressed to the ceo of the nairobi securities exchange, said impending structural changes could affect the price of the company’s securities.
The national government has once again come to the rescue of Kenya airways by pumping ksh.5 billion to shore up its operation. The bailout comes in handy for the airline that has been struggling financially to stay airborne even as plans are underway to nationalize it.
In a letter to Nairobi securities exchange, kQ chairman Michael Joseph said the funds would be crucial in revamping their engineering operations and general administration.
“The national treasury made a loan on commercial terms to kQ,” reads part of the letter addressed to nse ceo Geoffrey odundo.
Early this year, Kenya airways made the bailout request to the government to assist complete its e190 embraer fleet overhaul as well as boost its working capital.
Kenya airways has been unable to turn around its loss making run in the last five financial years. In its last report ending June 2019, Kenya airways reported half-year loss of ksh.8.56 billion, up from ksh.4.03 billion in similar period last year.
In the letter to nse, Joseph also alluded to the impending nationalization urging for caution in trading of its shares at the bourse.
“The possible restructuring may once confirmed in greater detail have a material effect on the price of kQ securities,” he also urged shareholders and investors to exercise caution when dealing, and to wait until a further announcement is made.