NSE Chair Kiprono Kittony on business outlook as more state parastatals set to list on the bourse

Kenya's President William Ruto has urged players in the stock exchange to open the bourse to allow for more listings, particularly by state parastatals. Expectations are high as at least 10 new listings are anticipated within the next year, with an intensification of activity projected at the exchange. Kiprono Kittony, Chairman of the Nairobi Securities Exchange, shared insights into the developments. In response to the President's directive, plans are underway to facilitate the increase in listings. Various stakeholders, including the national treasury, the national securities exchange, and the capital markets authority, are collaborating to ensure the realization of this ambitious vision. The privatization act is being reviewed as it presents challenges to achieving the intended listings. The focus is set on having 10 state-owned enterprises listed within the coming year, in addition to encouraging private sector applications. With about two to three private sector applications already in progress, the market is expected to witness a surge in tradable equities by approximately 33% to 40% in the upcoming year. The development is not only significant for Kenya but also for the broader East African and African regions as a whole. The sectors being eyed for the new listings are diverse. From the government side, various state-owned enterprises including those in agriculture, infrastructure, and insurance are being considered. Leading companies like Kenya Pipeline, Kenya Re, and Kenya Seed Company are among those expected to join the market. Notably, major entities like Kenya Port Authority are also on the radar for listing, further enriching the market’s asset portfolio. On the private sector front, banks like Credit Bank and Family Bank are in the process of seeking approvals for listing. Additionally, there are discussions around potential sell-downs of shares in prominent enterprises such as SafariCom, KenyaCom, and Mashbook Bank. The aim is to create a vibrant exchange that attracts not only local but also international investors, fostering a more dynamic capital market environment. Kenya’s stock exchange holds significant promise for investors seeking an African-centric investment approach. While exchanges in South Africa and Nigeria boast substantial listings, Kenya presents a unique proposition with its diverse and innovative market offerings. As a frontier exchange, Kenya is striving to enhance its market depth and breadth to attract sizeable foreign investments. The exchange's commitment to innovation and inclusivity is underscored by efforts to encourage retail trading and increase local participation. The target is to achieve a balanced market participation split between international and local investors, promoting broader access to trade. As African economies like DRC and Ethiopia emerge on the investment landscape, opportunities for collaboration and growth abound. The recent inclusion of DRC into the East African community signals a potential for cross-border partnerships and investments. With its abundant natural resources, DRC presents attractive prospects for foreign companies looking to list shares on regional exchanges to facilitate local ownership. The developments in DRC not only benefit the country but also hold promise for regional economic advancement. Volatility in global markets remains a key concern, impacting investor earnings across various exchanges. The market fluctuations are influenced by macroeconomic conditions and geopolitical tensions, leading to shifts in investor sentiments. While volatility is inherent to market dynamics, initiatives to introduce new products and enhance market stability are crucial. The aim is to steer the market towards a bullish trend, fostering a prosperous trading environment amidst global economic challenges. The evolving landscape of Kenya's stock exchange and the anticipated uptick in listings are pivotal for shaping the region's capital markets and attracting diverse investor interest.