Kenya Airways’ Share Price Surges After NSE Return
Kenya Airways (KQ) has made headlines with a remarkable surge in its share price following its return to trading at the Nairobi Securities Exchange (NSE). The stock has almost doubled, making it the best-performing stock in terms of capital gains thus far this year.
In 2024, Kenya Airways ended a long-standing decade of financial losses, reporting a post-tax profit of KSh 513 million within the first six months. This notable turnaround was largely attributed to a significant reduction in finance costs, although it was somewhat offset by a substantial increase in operating expenses.
A significant factor contributing to this resurgence was the Kenyan government’s initiative to absorb US$641 million in foreign currency debt owed to Exim Bank. This move provided much-needed relief to the struggling airline. Previously, the dollar-denominated debt had exacerbated finance costs due to the appreciation of the U.S. dollar, coinciding with the depreciation of the Kenyan shilling.
Furthermore, the airline’s half-year profits were bolstered by a 22% jump in revenue, reaching KSh 91 billion. This was supported by a 10% increase in passenger numbers, totaling KSh 2.54 million.
“We are not there yet, but this is a significant milestone that indicates our intention to continue transforming this organization into a fully stable and sustainable airline, so this is something we want to celebrate,” expressed Allan Kilavuka, the Chief Executive Officer, in August.
Kenya Airways, with a significant 48.9% ownership by the state, has outlined plans to mobilize up to US$1.5 billion in new capital aimed at revitalizing the company.
The airline’s resurgence places it in company with Kenya Power, another state-backed enterprise, both of which have shown substantial capital returns in recent months after prolonged periods of underperformance at the Nairobi bourse.
This positive trend has elevated the market capitalization at the NSE to a two-year high of KSh 2.04 trillion, with several other stocks inching towards 52-week highs in this ongoing bullish market. During 2025, among the capital gainers, Kenya Airways, Kenya Power, and HF Group are leading with gains of 49.6%, 44.3%, and 28.6% respectively.
The resurgence of Kenya Airways not only signals a new chapter for the airline but also reflects a broader positive sentiment in the market, inspiring confidence among investors and stakeholders as they witness this historic rebound.
