On 11^th October 2022, H.E. President Dr. William Ruto pledged that his government will work with more private sector companies to help them list in the Nairobi Securities Exchange (NSE) while promising that between 5 and 10 public enterprises will be listed in the next 12 months.

The president made this commitment as he launched the Enhanced NSE Marketplace, a platform provided by NSE through which investors will be linked with opportunities for financial growth through various investment platforms. The trading infrastructure will facilitate value creation for buyers and sellers of various securities.

In an event attended by KEPSA leaders among them the CEO Ms. Carole Kariuki who is also a board member at NSE and the KEPSA Chair Ms. Flora Mutahi, the President encouraged the listing of more companies in the NSE from the Private Sector, to embrace the opportunity offered by the platform in raising more finances for investment and expansion.

The President expressed his confidence in the stock market’s potential in partnering with the Government to raise development capital and ensuring more people have a stake in listed companies.

“It is time to unlock the potential that exists in NSE to drive the economy of our country. There is potential for us to raise the resources that today we are struggling to raise using debt instruments that we are looking for in foreign capitals.” The President said.

President Ruto also urged the NSE to innovate its products towards making it possible for more Kenyans to buy, sell and grow their wealth via the NSE.

In her speech, Ms. Ida Kimemia the Board Chair at the Central Depository and Settlement Corporation (CDSC) appreciated the Government's proactive approach to bringing efficiency and clearing and settlement processes of listing securities, which resulted in the passing of a central depository act that provided a legal basis for the formation of CDSC in 2004. “Since then, the institution has facilitated the onboarding of 1.6 million investors reducing the time takes to settle a trade from 14 days to 3 days, which is within the accepted international timelines.” She said

Nick Nesbitt, the Chair at the Capital Markets Authority (CMA) insisted on the need to create more exciting investment products to attract investors. “The CMA has financed key infrastructure projects in Kenya notably the Kenyan public infrastructure bond and several government infrastructure bonds raising over 1.2 trillion in 13 years, about 100 billion shillings per year on average. We've demonstrated our commitment to supporting SMEs’ financing journeys, and the NSE has consequently on-boarded 33 of them into the incubator Ibuka program.” He said.

Donald Wangunyu, Chairman of Kenya Association of Stockbrokers and Investment Banks (KASIB) appreciated the President's support towards the innovation of NSE which resulted to the creation of Ibuka and M-Akiba products. “On 5^th Sept 2022, the day that the Supreme Court upheld President Ruto’s win in the just concluded elections, the market gained Ksh 42 billion, on that trading day alone, a reaction by investors indicating their embrace of President Ruto’s win and appreciating his support to the market over the years.” He said

In his speech, Kiprono Kittony the Board Chairman at NSE indicated that the President’s visit to the NSE today was a significant testament to his commitment to the prioritization of economic reforms aimed at supporting medium to long-term economic growth, an increase in employment opportunities as well as reducing fiscal vulnerabilities in the country's economy. “Deeper and more efficient equity and debt markets provide an effective and efficient way of mobilizing domestic resources and international capital, complementing traditional financing by fostering risk and long-term investments.” He said.

Mr. Kittony said that the Enhanced NSE Marketplace will boost growth in our domestic capital markets by addressing both the supply and the demand side to accelerate growth. The platform will also provide a platform for Kenya to communicate investment opportunities to the world, positioning the country as a hub for trade and investments, enabling Kenya to attract FDI and various leading emerging sectors in Kenya.

The NSE Market Place is envisaged to be a monthly initiative in respect of creating awareness of the Kenyan capital market and the securities exchange and the opportunities that abound for both investors and also issuers of securities. This would be by way of having a celebratory market opening bell ceremony, held at least once a month for the purposes of creating a buzz around the market and exciting the public about investing through the Exchange. The opening bell would be accompanied by market information briefings and interviews, including with members of the public, with a view to enabling enhancing financial literacy.

Other key speakers who spoke on their listing experience and the benefits of the CMA included Peter Ndegwa, CEO of Safaricom PLC, Jane Karuku, CEO of EABL, Dr. James Mwangi, CEO of Equity Group PLC, Gideon Muriuki, CEO of Cooperative Bank and Hosea Kili – CEO of CPF Financial Services who all echoed on the advantage that NSE provides to businesses in providing the access to financing both locally and internationally.

OUTCOMES OF THE EVENT:

• NSE asked the Government to rejuvenate the privatization program of state-owned enterprises, which will mark devise a decisive point in broadening Kenya's appeal to both domestic and international investors.
• NSE asked the Government to consider releasing additional shares in already listed companies to increase opportunities, revitalize interest among Kenyans as well as help address corporate governance issues.
• NSE appreciated the President for appointing Hon. Moses Kuria as the Minister for Trade and Investments and expressed their confidence in him to deliver on the Government’s agenda.
• The Government asked the NSE to innovate its products towards making it possible for more Kenyans to buy, sell and grow their wealth.
• The President will hold a meeting with Hosea Kili – CEO of CPF Financial Services to discuss possible financing opportunities that the institution can provide to support Government projects.
• The Government to consider reducing tax on pension savings and pension withdrawals.
• The Government to consider making pension savings mandatory for all Kenyans.
• The Private sector (NSE) to list 5 new companies in the stock market.
• The Government will pursue the amendment of the Privatization act.
• The Government committed to the privatization of between 6-10 institutions in the next 12 months.
• The Government to remove tax impediments to allow more Private Sector companies to list on the NSE.
• Safaricom and other players in the ICT sector to work together to create more digital access to the NSE.
• The Government will set up the proposed Nairobi Financial District, the world's newest and most exciting financial center as well as the home of choice to the world's leading financial institutions.