The Kenya Airways share price on Wednesday April 22nd dived below the Sh. 1 mark, trading at Sh. 0.97 at the Nairobi Securities Exchange, following the intensified financial woes shackling the institution.
The drop represents a 6.73% decline in 24 hours. The massive drop has been attributed to the meager revenue recorded by the airline coupled with its financial struggles in the recent past.
“Globally, a number of airlines are struggling. KQ revenues are expected to drop and hence investors are selling stocks. Losses are also expected to be very high this year. Investors are still waiting on a clear indication on nationalization plan,” noted AIB Capital head of research, Sarah Wanga.
Reports on Business daily pointed at a deep financial crisis after the Kenya Airways CEO, Allan Kilavuka confirmed to the publication that he had sent an emergency notice for additional funds to both the treasury and the ministry of transport.
The negative sentiment on stock is expected to get worse as local containment measures and global travel restrictions continue to take effect, elevating the financial crisis.
