Kenyan SMEs 'to get stock market presence'

Mar 07, 2011

Kenyan small and medium-sized enterprises (SMEs) could soon have a presence on the country's stock market if a proposal to form an exchange for such businesses is given approval.

Firms will be able to generate money to fund expansion if the suggestion from the Nairobi Stock Exchange (NSE) is successful, Business Daily reports.

It is targeting a fourth quarter launch for the Small and Medium-Sized Exchange and aims to have "at least five companies listed" initially.

Willy Mwangi, Acting Chief Executive at the Kenya Association of Stockbrokers and Investment Banks, was quoted by the news source as saying it is a "very exciting development at the NSE".

He noted SMEs that are listed on the stock exchange will have access to another source of expansion funding and benefit from raised brand awareness.

The NSE, which was constituted as a voluntary association in 1954, currently has a total of 47 listed firms.