Kenya to woo African firms to enlist on Nairobi Securities Exchange

Kenya plans to woo African firms to enlist at the Nairobi Securities Exchange (NSE) in order to make the country a regional financial hub, officials said on Monday.

Geoffrey Odundo, chief executive officer of NSE, told Xinhua in Nairobi that so far Ugandan and Rwandese firms had crossed listed at the Nairobi bourse.

“We want to encourage more African blue chip firms to list their shares at the NSE so that they can enhance the liquidity of the Kenyan capital market,’’ Odundo said when the Institute of Certified Financial Analysts (ICIFA) entered into an agreement with the NSE.

Odundo said that Kenyan capital market provides an opportunity for African firms to raise affordable long term finance to expand their operations.

He said that Kenya was focusing on increasing the number of firms listed at the NSE.

“More firms trading means that investors have a large pool of equity instruments to choose from,’’ he said.

He said that Kenya had a large pool of both institutional and retail investors that were willing to invest in firms that will offer good returns.

The NSE has also developed an incubation programme that aims to lure more local firms to consider listing at the NSE in order to deepen local markets.

Odundo revealed that Kenya had a series of tax incentives for firms that listed at the NSE.

He said that more firms would help to deepen the securities exchange where over 60 per cent of the market capitalisation was currently dominated by six companies. (Xinhua/NAN)

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