If not for the poor taxpayer getting screwed [again] the value of KQ shares would be zero BUT tuta-do? Even with the (unfortunate) bailout there is little value in KQ. In the meantime, KK [even KenGen] is doing quite well.

1) Stupidity/Irrationality [Greater Fool Theory]
2) Implicit & explicit guarantees from GoK [Taxpayers] bailout

Another example is Uchumi which is a dead man walking. Or Mumias.

Uchumi, KQ and Mumias are important to the country but not in their current state.

Example: KQ should enter into voluntary (bankruptcy) restructuring and the assets (bilateral rights, planes, staff, etc) its needs moved to a new entity. The "new KQ" can continue the business with the assets while the liabilities remain with the "old KQ" which can then be wound up. The creditors of "old KQ" would become the shareholders of the better capitalized "new KQ" which can also source for new funding/shareholders. Unfortunately, the shareholders of the "old KQ" will be wiped out and creditors would take a haircut BUT the country/taxpayers will be better off for it.

Many US airlines have done so including United, Delta, etc.

In addition,GoK shouldn't look at KQ as a cash cow [taxes, levies, etc] but as a facilitator for other sectors eg tourism. Jambojet (& similar entities) should be encouraged to expand regionally. It's much cheaper to fly in Europe than from Nairobi to Dar/EBB/KGL [1 hour flights].

@Obiero - I stand by my original thesis that the "old KQ" is a poor investment for the "minority" [and GoK] shareholder. I would not advice anyone to invest in KQ at today's price. The road to recovery will be long and hard.

There are some assumptions here but it's a general guide.
Currently GoK pays 10% tax-free (& risk-free) for 5-6 year paper which means 5/- will become 10/- in 7 years (June 2024). I don't see KQ shares at 10/- by Jun 2024. You can adjust these numbers +/- 10% but the overall conclusion remains the same for the LONG-TERM investor who is not speculating.

I expect the banks, etc will look to sell their shares ASAP since they aren't in the "owning shares" business. Then there may be other sellers eg IFC.

GoK could sweeten the pot by giving KQ waivers [duty, tax, credits, etc] just as KenGen had these 150% "investment deduction credits"...

@ericsson learn to listen to people who know what is happening.. KQ Lenders Co. LTD registered on 09.06.2017 shall now be a KQ shareholder. Total shares issued now rises to 29.9B.. Conversion price KES 2.13.. The same occurring via a share split and eventual consolidation with a factor of 1:4, resulting in 7.4B final listed shares. I await the Open Offer of 1.5B whose price the exchange bar notes has been agreed in principle to fall below KES 1.6.. There is no rights option so indeed I will buy to mitigate dilution of 95.5%, noting that the KQ Lenders Co Ltd, GoK & KLM will not participate in the issue. GoK now holds 45% of KQ.. KLM founding agreement of 1995 abolished. KQ now in positive equity of KES 11.5B. Sit tight

Crunch time.. All unfolds as previously foretold by the exchange bar. Only the bold and liquid are expected around here

@ericsson its not a Rights Issue but an Open Offer. please read the circular and understand its contents to avoid an open display of high ignorance. the two primary shareholder entities sitting out the Open Offer, increases chances of heavy loading up by other existing shareholders. Further, the board has stated clearly that existing shareholders will be allowed to buy at a discount to the conversion price. Click here to read the KQ Project Safari circular

https://photos.app.goo.gl/wrEb6X1GzBw4V1b93 sincerely it would not be any easy here, held by the steel balls. Somebody must be wondering how it got all the way to this difficult situation.

I hastily forgive you as you do not know what you are saying.. Watch and learn. Only the liquid will survive.

@ 0biero are you truly liquid?

To discuss this thing with an educated mind, let us read the 41 page KQ Project Safari circular