CMA lines up more reforms as State targets retail traders

Key Takeaways

• President William Ruto announced further Capital Markets Authority (CMA) reforms aimed at increasing private business and government agency listings on the Nairobi Securities Exchange (NSE).
• The reforms seek to make the NSE more accessible to Kenyans, democratize wealth, and provide private companies with an alternative to bank borrowing for expansion.
• Previous government reforms, including a strategic reduction of the Central Bank Rate, have boosted NSE market capitalization from Sh1.2 trillion in 2022 to Sh3 trillion.
• The initiatives have also improved local investor confidence, reducing the previous heavy dominance by foreign investors on some counters.
• The government is exploring additional incentives for private companies to list, with proposals currently under review by the Cabinet Secretary for Treasury.