Earlier today, the KEPSA Energy and Petroleum Sector Board in partnership with Nairobi Securities Exchange (NSE) held a breakfast engagement at the NSE offices in Westlands. The aim of the engagement was to capacity build members on the potential opportunities available for their businesses in the capital market as well as create a platform for members to address key concerns around the stock market. The delegation was led by KEPSA Director, Eng. James Mwangi and CEO Nairobi Securities Exchange, Mr. Frank Mwiti.

In his remarks, Eng. Mwangi, began by highlighting the timely need for the engagement as the country has an outward focus of attaining global competitiveness. With a focus on the energy sector, he noted the potential of the sector, especially with the transition to a green economy, to tap into the local content readily available in the stock market. However, he iterated the need to bridge the knowledge gap, for businesses to effectively maximize the opportunities available to them. As he concluded he encouraged partnership with NSE for the broader KEPSA membership ranging from SMEs to Multinationals.

CEO Frank Mwiti, in his remarks, noted the vital role energy in contributing towards the cost of living. Speaking to the recent occurrences, he noted a possible spike in interest rates and therefore the need to explore various capital sources for a sustainable business environment. Further, noting the transition of the energy sector towards clean energy solutions, emphasized on the potential partnership opportunity with NSE to support businesses within the sector in accessing technical resources and green financing. He concluded by expressing his interest in productive collaboration that would lead in the overall development of the business environment for both small and large private businesses.

The meeting highlighted the following;

1. The Nairobi Securities Exchange offers a myriad of services in equity securities, debt securities, Derivatives, REITS, with a current equity market capitalization of Kshs. 1.7 trillion and Bonds market capitalization of Kshs. 4.3 trillion
2. Despite significant opportunities for partnerships in the clean and renewable energy sector in Kenya, only three energy companies are listed on the stock market. This is in contrast to the potential for financing through green bonds and green financing.
3. The key misconceptions and concerns among business owners on the public stock market which are; poor valuation compared to private markets, cheaper bank debt options, exposed business information to competitors and loss of control of your business. It was noted that the market regulations have been amended to accommodate the addressed challenges and therefore the market space is less restrictive.
4. There is need for private sector to review the Government Owned Enterprises Bill, 2024 which seeks to provide for the establishment, control, governance, performance and ownership of Government Owned Enterprises and public service obligations in respect of Government Owned Enterprises.

In conclusion, both parties agreed to hold follow-up engagements with individual companies to be able to address private sector challenges within the stock market and establish partnership opportunities that would create a better business environment.

Click the following links to access the presentations

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