Capital Markets
From The Report: Kenya 2016
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The country’s capital markets have seen some bright spots in 2015 amid the broader turbulence affecting emerging markets around the world. The NSE had a total of 64 listings as of late 2015. They were split into 11 categories: agricultural; automobile and accessories; banking; commercial and services; construction and allied; energy and petroleum; insurance; investment; investment services; manufacturing and allied; and telecommunication and technology. Of these, banking had the most listings, with 11. Total market capitalisation stood at KSh1.955trn ($21.5bn) in October 2015. Strong volumes of equity market trading were seen over the first half of 2015, with equity turnover worth KSh107bn ($1.18bn). Full-year equity trading volumes climbed from KSh86bn ($946m) in 2012 to KSh155bn ($1.7bn) in 2013 and KSh215bn ($2.4bn) in 2014.

This chapter contains an interview with Geoffrey Odundo, CEO, Nairobi Securities Exchange.

Articles from this Chapter

Overview

Market movers: With the sector set for further reforms the future looks bright
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The country’s capital markets have seen some bright spots in 2015 amid the broader turbulence affecting emerging markets around the world. While the bourse was not untouched by the strengthening US dollar and macroeconomic headwinds, trading volumes – which are often low on African exchanges – were up year-on-year, and the market’s long-term fundamentals remain comparatively attractive. More general economic pressures – including currency depreciation, fiscal deficits and rising sovereign…

Interview

New listings: OBG talks to Geoffrey Odundo, CEO, Nairobi Securities Exchange (NSE)
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Interview:Geoffrey Odundo Which areas have the most potential for new listings on Kenya’s capital markets? GEOFFREY ODUNDO: The capital markets industry in Kenya has come a long way and is gaining substantial traction among corporates seeking to raise capital. In 2014 the exchange saw KSh6.1bn ($67.1m) in additional equity issues and KSh19.84bn ($218.2m) in corporate debt from various listed companies, as well as three new listings on its Growth Enterprise Market Segment (GEMS). These events…

Analysis

Listing the benefits: Demutualisation of the exchange kicks off a round of reforms
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The Nairobi Securities Exchange (NSE) demutualisation in 2014 marked the beginning of a period of rapid innovation in East Africa’s capital markets. Together with the Capital Markets Authority (CMA), the sector’s regulator, the reforms should put the country’s markets on track for steady growth over the long term. The framework for reforms is the 10-year Capital Market Master Plan, which was launched in November 2014 by the cabinet secretary of the National Treasury and links to other major…

Analysis

Bonding process: Secondary trading has been slowing, despite improvements in transparency and efficiency
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The country’s bond market is the third-largest in sub-Saharan Africa after those of South Africa and Nigeria, with a trading volume of $70m-100m a day. However, during 2015 secondary trading has been slowing, largely due to changes in the economic environment and the lure of soaring interest rates for short-term debt instruments in the second half of the year. The slowdown comes despite the Nairobi Securities Exchange (NSE) making giant strides in improving transparency and efficiency in the trading…