Connect with us

Hi, what are you looking for?


Banks urged to embrace online trading

NAIROBI, September 2 – Commercial banks and stockbrokerage firms have been urged to integrate their financial systems so as to facilitate online trading.

Afrika Investment Bank Chief Executive Peterson Mwangi told reporters Tuesday that online trading would reduce the reliance on cash thus reducing the settlement risk and also enhancing confidence in the financial sector.

“It is going to make the market more vibrant; it’s going to make it more liquid and actually bring in more investors,” he said of the system’s benefits.

With this system, when a client’s order is executed, it would immediately reflect on their account.

He said system integration was already possible with modern technology, and the only thing remaining was the industry’s resolve to increase nation-wide access to investment banking.

Stockbrokers are already using the Automated Trading System (ATS), which enables them to trade from their offices.

Mwangi said both the Capital Markets Authority and the Central Bank of Kenya would then offer the regulatory supervision.

He spoke during the formal launch of Afrika Investment Bank, which was formally operating as Ashbu Securities, a stockbrokerage firm.

“Our capital markets are going through a time of transition and therefore companies have to re-invent themselves,” Mwangi said, pledging to continue rolling out new products and services in the market to suit their diverse clients.

Advertisement. Scroll to continue reading.

He said they would use their success as a stock broker to build on their investment firm, which would also venture into the region by 2010.

“Africa is well endowed with resources and talent. We want to help the continent’s people to harness resources they have to move them to the next level,” he vowed.

Vice President Kalonzo Musyoka who spoke at the function assured players in the sector that the government was working closely with market intermediaries as they automate their back office operations to ensure strong financial sector fundamentals.

“The government will also facilitate the Nairobi Stock Exchange to become an effective self regulatory organisation through such measures as demutualisation,” the VP added.

He challenged investment banks to finance public public-private sector partnerships in key infrastructural projects and promised to ensure a better business environment to enable them to operate.

“This way, Kenya will be widely marketed as a strong economic hub for more investments,” Musyoka added.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...