Kenyan Deputy President, William Ruto, has challenged private companies on the need to raise money from the stock exchange, instead of borrowing from financial institutions.
He said the Nairobi Securities and Exchange should do more to ensure more companies get listed at the Bourse. “The NSE is supposed to help us support more companies, especially the big ones, so that they can go to the stock exchange, instead of borrowing money, so that they can list and raise capital for their expansion.”
The Deputy President who spoke in Nairobi over the weekend, said the government was supporting the growth of the capital markets through incentives and an enabling environment.
“One such incentive, which should be exploited, is the African Continental Free Trade Area Agreement that was signed by 44 countries in Kigali, Rwanda, last month. It allows African countries to trade and cushion themselves from foreign aid,”
he said.
Ruto said the government had tapped into the international market for financing, which he termed a deliberate strategy to create affordable capital for the private sector and reduce its cost.
“This week, President Uhuru Kenyatta was at the London Stock Exchange to ensure that we can dual-list the National Oil Corporation to raise funds that will help us develop infrastructure for our oil,” Ruto said.
The Deputy President also explained that the capital markets was a major component of transformation, sustainable development and wealth creation, and, as such, should tap into and push the government’s Big Four priority areas of food security, manufacturing, housing and healthcare.
“Through diversification, innovation and cross-listing, they can expand opportunities for financing our growth, advancement and produce multiplier effects across all sectors,” Ruto
said.
Responding, the NSE chairman, Samuel Kimani, said there were efforts to increase the number of listed companies in the country. “We will hold talks with relevant stakeholders to come up with ways of ensuring this happens,” he promised
Nigerian Stock Exchange Chief Executive Officer, Oscar Onyema, who is also the President of African Securities Exchanges Association, said the suggestion for private sectors to embrace the capital market was a noble
idea.
