NSE chief urges openness by listed firms to woo foreigners

Kenyan companies need to increase the level of disclosure if they hope to attract significant foreign funding, the Nairobi Securities Exchange (NSE) chief executive has said.

Geoffrey Odundo said local and foreign investors are only comfortable with firms that use internationally accepted financial reporting standards.

“In order to attract increasing amounts of capital to our capital markets, we need to ensure that domestic and international investors are confident in our investor protection standards,” he said.

“They also need assurance that our disclosure standards will ensure that companies listed on the stock exchange will provide sufficient information for them to make informed investment decisions.”

Mr Odundo made the remarks at the launch of this year’s edition of the Financial Reporting (FiRe) Awards.

Capital Markets Authority (CMA) acting chief executive Paul Muthaura said: “By submitting financial statements for scrutiny by FiRe Awards, a firm makes a statement that it has nothing to hide in its books.”

Entries for the eleventh edition of the competition will be closed on July 20 and the winners in the various categories announced on October 23.

Organisers said they expect more participation from government institutions in this year’s edition.

The Institute of Certified Public Accountants of Kenya, the CMA and the NSE organise the annual competition.

Erastus Mwencha, deputy chair of African Union Commission, is expected to be the guest of honour at the award ceremony and gala dinner on October 23.

The event will be held at Windsor Golf Hotel & Country Club in Nairobi.