(Xinhua) -- Trading at the
Nairobi Securities Exchange (NSE) derivatives market
will kick off on Thursday, with the official launch
expected on July 11.
Geoffrey Odundo, NSE
chief executive, said the derivative market dubbed
NEXT which trades equity index futures and single
stock futures, provides new opportunities for
investors, enabling them to better diversify their
portfolios, manage risk, and deploy capital more
"Futures contracts provide investors with risk
management tools in the wake of unexpected
volatility in asset prices.
"NEXT will also enable Kenya to consolidate its
position as a leading financial services hub
offering a wide variety of investment products,"
Odundo said Wednesday in a statement.
"The exchange will initially offer index futures
contracts on the NSE 25 Share Index and single
futures on Safaricom Plc, Kenya Commercial Bank
Group Plc, Equity Group Holdings Plc, KenGen Co.
Plc, East African Breweries Ltd, British American
Tobacco Kenya Plc and Bamburi Cement Ltd," said
He said the single stock futures have been
selected based on several eligibility criteria,
among them the security underlying the futures
contract must be a listed instrument on the NSE.
"It must also demonstrate a minimum average daily
turnover of 7 million shillings (68,627 U.S.
dollars) over the last six months before review and
must have a market capitalization of at least 490
million dollars," he said.
According to Odundo, all futures contracts listed
on NEXT will have quarterly expiry dates, which will
be the third Thursday of March, June, September and
December of every year and the contract will be
settled in cash.
"In line with global practice in safeguarding
market infrastructure and investor interests, the
NSE has also established the settlement guarantee
fund and the investor protection fund," said Odundo.
manufacturers calling for tax incentives to
NAIROBI (Xinhua) --
Kenyan manufacturers are calling for
tax incentives in order to improve their regional
competitiveness, says a report released on
The report by global software firm SYSPRO and
Strathmore University shows that the most important
initiatives that can increase Kenya’s industrial
competitiveness both for local and export markets
are favorable taxes and favorable regional
"Other factors included reduction in cost of
production, upgrading the current technologies
deployed and increasing production efficiency," says
The findings show that the provision of qualified
or trained personnel would be suitable for
increasing manufacturing production in Kenya,
followed by the provision of subsidies and purchase
guarantees by the government.
The report shows that energy is the main external
factors that adversely affect business operations,
followed by political climate, taxes and cheap
Ismail Ateya, dean of research and innovation at
Strathmore University said that high software and
hardware costs as well as the lack of skilled labor
were cited as major hindrances to technology
"Manufacturers interviewed proposed to have tax
incentives for technology purchases, better training
for local technology partners, improved availability
of new technologies locally, availability of
affordable automation and robotics technology as
well availability of skilled technical workers," he