Kenyan Saccos could soon list on the NSE
The Kenyan Capital Markets Authority is currently working on the project.The Kenyan Capital Markets Authority (CMA) has asked the World Bank for help to set up an over-the-counter (OTC) market for Kenya's savings and credit co-operative societies (Saccos) and to allow them to list on the Nairobi bourse.
"We are working on a project, together with a team from the World Bank that will help Saccos and middle and large-sized companies with diversified shareholding that have not listed, to list," said Paul Muthaura, CMA chief executive officer, quoted by the East African.
"We are looking for a transitional arrangement for Saccos, some form of OTC platform, before they can fully list on the NSE," he added.
The programme to list Saccos on the stock market is part of the World Bank's "First Initiative", aimed at strengthening countries' financial sectors.
The Co-operative Alliance of Kenya (CAK) - the umbrella body for Kenya's Saccos - said listing on the NSE would help Saccos divest from institutions in which they have been shareholders for a long time.
"We are looking for a secondary market for Saccos to trade their shares on the NSE. We are in discussions with the regulators for a platform to be created on the exchange that will enable Saccos to buy and sell shares amongst themselves," said Daniel Marube, the chief executive officer of CAK.
Saccos was established with the aim to boost up rural savings and provide Kenyans with loans to improve their earnings and enhance their livelihoods. Around 7000 Saccos are currently registered.