, NAIROBI, Kenya, Apr 7 – The government has called on the leadership of the Nairobi Securities Exchange (NSE) to be keen and firmly deal with any illegal transactions and corruption at the bourse.
Deputy President William Ruto says there is especially need to deal with market speculators and wheeler dealers whose aim is to distort stock prices for their own benefit.
“We must refuse to celebrate the people who cut corners. It’s time for the business community to say no when they see a transaction that exploits the people of Kenya,” Ruto said.
Ruto was speaking on Monday during the Nairobi Securities Exchange 60th anniversary celebrations and the launch of its new logo. He also opened the NSE’s new building in Westlands.
“We must do whatever it takes collectively and individually, to refuse conmen, people who engage in short cuts and the corrupt,” Ruto emphasised.
As its starts a new journey, the Deputy President called on the NSE to work closely with the Capital Markets Authority (CMA) and hasten the demutualisation process that will see more Kenyans have a stake of the 60 year old bourse.
A mutual company formed by the stockbrokers currently owns NSE. Many view the demutualisation as a priority as it would improve business, discipline and governance, while making the NSE a commercially viable entity among other things.
CMA chairman Kung’u Gatabaki pledged to ensure the process is complete before the end of the year.
“The chairman (Eddy Njoroge) and I have almost a monthly prayer meeting before we go to our organisations issues, to ensure that both the institutions remain smoothly run. Demutualisation is our key priority,” Gatabaki said.
Meanwhile this year, the NSE board has approved Sh250 million to upgrade its infrastructure especially the trading platform.
“New technology will help us better serve the changing markets with increasing capacity, reduced process times and to support the introduction of new products,” the NSE chairman said, “Over the past seven years, the government has raised Sh995 billion through the issuance of Treasury Bonds listed at the NSE.”
The Nairobi Securities Exchange traces its history to a time when dealing in shares commenced with trading taking place on a ‘gentleman’s agreement’ with no physical trading floor, where business was conducted over a cup of tea at the Stanley Hotel.