NAIROBI (Xinhua) --
The Kenyan government on Thursday challenged
private companies to raise money from stock exchange instead of
borrowing from financial institutions.
William Ruto said the government has 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.
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 during the official opening of the 7th
Building African Financial Markets (BAFM) Seminar in Nairobi.
He said the Nairobi
Securities Exchange (NSE) should step up efforts 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 and instead of borrowing
money they can list and raise capital for their expansion,” Ruto
He said the
government is 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 that
capital markets are major components of transformation,
sustainable development, wealth creation and should tap into and
push the government’s Big Four priority areas of food security,
manufacturing, housing and healthcare.
diversification, innovation and cross listing, they can expand
opportunities for financing our growth, advancement and produce
multiplier effects across all sectors,” he said.
The deputy president
singled out delivery of Universal Health Coverage, saying the
government plans to float bonds to finance the program and urged
the NSE to leverage on it.
portion of proceeds from future issuance of government
infrastructure bond will be earmarked for the health sector,” he
The NSE chairman
Samuel Kimani said there are 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,” Kimani said.