NAIROBI, (Xinhua) --
Kenya has been advised to boost investment in the
capital markets through privatization of state corporations and
review of restrictive rules.
according to Cytonn, a Nairobi-based investment firm, would
ensure active participation in the capital markets and encourage
new listing, which has eluded the Nairobi Securities Exchange (NSE)
in the last several years.
sophisticated capital markets relative to its east African
peers, ease of entry and exit is hampered by restrictive
regulations and low market liquidity, which contributes to high
transaction costs,” noted Cytonn in an investor report on
The firm called for
enhancement of investor education and evaluation of tax and
regulatory frameworks to encourage financial stability and
transparency of financial information.
Authority Chief Executive Paul Muthaura said recently the
regulator is reviewing its listing rules, including requirements
that firms must have been profitable in the past three or five
years, and the standards on debt to equity levels.
markets are considered the most sophisticated in east Africa,
with 62 listed companies and a market capitalization of 2.1
trillion shillings (20.6 billion U.S. dollars).