The members and directors of the Nairobi Stock Exchange (www.nse.co.ke) have approved the demutualization of the Nairobi Stock Exchange, subject to enactment of requisite laws that will provide the legal framework. A draft law is available on the website of the Capital Markets Authority (www.cma.co.ke).
According to the latest weekly roundup from stockbroker Kestrel Capital (www.kestrelcapital.com), the NSE will change its name to Nairobi Securities Exchange and will have an approved share capital of KES 1bn (US$13 million). In the new proposed ownership structure, Treasury will own 10%, the Investor Compensation Fund (IFC) 10% and stock brokers will collectively own 80%, which they will share equally among themselves.
Newsagency Bloomberg reported that the decision was taken at a meeting on 4 March. It cites Chairman Edward Njoroge as telling reporters that a team has been working on the demutualization and separating ownership from management, as well as the valuation. Earlier, CEO Peter Mwangi said the NSE would trade its shares on the exchange.