Kenya Airways Ltd. (KNAL), sub-Saharan Africa’s third-biggest airline, headed for its strongest close in almost two weeks following a court ruling the company can cut jobs, a move that may slash costs.
The stock climbed as much as 3.9 percent and was trading 0.8 percent stronger at 13.10 shillings by 2:08 p.m. in Nairobi, the capital, according to data compiled by Bloomberg. A close at that level would be the highest since Aug. 22.
The company can move forward with plans to axe at least 650 jobs after Kenya’s Industrial Court lifted an injunction stopping the cuts, the Nairobi-based Nation newspaper reported on Aug. 31. Workers are contesting the decision.
“The costs will go down if they are laying off staff, which could make the company a more attractive investment opportunity,” Mbuthia Irungu, an equity trader with Renaissance Capital Ltd., said by phone from Nairobi.
To contact the reporter on this story: Sarah McGregor in Nairobi at firstname.lastname@example.org
To contact the editor responsible for this story: Nasreen Seria at email@example.com