@guru - Preference Shares are a hybrid... they have characteristics of both Equity & Debt (not necessarily all liabilities).

Off the balance sheet? Unless, you pay them off... they will remain on the BS in one form or another!

@sparkly - Unlikely that KPLC will raise (Rights Issue) funds to pay off Pref Shares... most likely Pref will be converted To Ordinary...

You are sorta right... but the 2 can happen simultaneously...

Authorize all the necessary steps at an AGM/EGM & then submit to CMA

1) Create (authorize) Ordinary Shares
2) Get the 'ok' from shareholders to 'issue' Ord Shares
3) Get the 'ok' to exchange Pref for Ord at a determined ratio e.g. 7:1 (140/-). I think it should be 10:1 (200/-)
4) The Pref Shares may remain on the books as AUTHORIZED but NOT Issued (like Treasury Shares)

Next:

5) After AGM/EGM, submit application to CMA.
6) Once CMA agrees, then Board picks a date for the exchange. Generally beginning of a period.
7) Exchange takes place.

No law (to my knowledge) prevents 'conversion' from one share class to another.

Uchumi is going to convert debt to equity. Sorta similar since Pref have debt qualities as well.

...pref shares have an adjective b4 them...redeemable, convertible, cumulative, participatory(tive?)...so conversion need not be associated with rights I think...

Kenya Airways reports the following traffic highlights for Oct-Dec 2009:

Passenger numbers: 773,079, +4.2% year-on-year;
Within Africa (excluding Kenya): 421,949, +9%;
Within Kenya: 133,301, -5%; (Kisumu suspension, Malindi suspension)
Europe: 97,252, stable;
Middle east, Far east and Asia: 120,577, +3%;
Passenger load factor:
Within Africa (excluding Kenya): 61.6%;
Within Kenya: 75.9%;
Europe: 71.8%;
Middle east, Far east and Asia: 71.2%;
Cargo volume: 14,006 tonnes, +9%