NAIROBI, Kenya, Oct 11 – The Kenyan government is seeking to increase the number of listed State Owned Enterprises at the Nairobi Securities Exchange(NSE).
President William Ruto said his administration targets to privatize between six to ten government-owned firms in the next twelve months.
The pronouncement is aimed at attracting more investors into the bourse that has seen little or no major investments over the last six years.
The Head of State instructed the relevant parties to commence the review of the Privatization Act with a view to repealing it and replacing it with a more facilitative framework that will accelerate the privatizations.
“The government is embarking on reviewing the Privatisation Act to create a legal framework that will ease the structure of listing for companies,” he said.
Ruto spoke at the launch of the NSE Market Place in Nairobi, noting that the government will support companies looking to be listed on the stock market.
Through the program, NSE aims to communicate investment opportunities to the world & attract fresh foreign direct investments into the country.
The Head of State also encouraged the private sector companies to work together with the Capital Markets Authority(CMA) and the NSE to list.
“For those that are reluctant to list because of issues around tax, we will work together with them to deal with any impediments,” said Ruto.
Ruto said he looks forward to having as many Kenyans trading on the NSE and being able to generate wealth for themselves courtesy of the stock exchange.
NSE Board Chair, Kiprono Kittony welcomed the move to privatize state-owned firms saying it would boost listings at the bourse.
“Public sector and stateowned listings have driven up other markets and we hope that we can realize the same here at NSE,” said Kittony.
The Government has also commenced the process of developing the Nairobi Financial District, the newest financial centre.
“I am reliably informed that investment is a function of savings. Without a savings culture we cannot participate meaningfully in investment. I am working with existing entities like NSSF to promote a savings culture,” said Ruto.
