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10 NSE-listed firms fail to issue investor calendars
NSE and CMA had said the corporate calendar would enable investors to make more informed decisions and contribute to “greater market predictability and stability.”
Ten Nairobi Securities Exchange (NSE) listed firms have failed to submit their corporate event calendars, contravening the rules that were introduced to enhance transparency for investors.
The NSE latest corporate calendar shows the list of firms that have failed to make the disclosures are East African Portland Cement, Eveready East Africa, NewGold Issuer (RF) Limited, HomeBoyz Entertainment and Housing Finance Group.
Other firms that have failed to submit their corporate calendars are Kenya Reinsurance Corporation, Nairobi Business Ventures, Africa Mega Agricorp, Standard Group and Uchumi Supermarkets.
Under the the NSE and Capital Markets Authority (CMA) circular issued in September last year, all NSE firms were required to submit the calendar by January 10, 2025.
The rules were introduced in order to boost transparency and improve communication between the companies and investors by sharing dates of crucial events such as release of financial reports and payment of dividends.
In developed markets such as the US, annual corporate calendar is a common practise and provides investors with all the upcoming events and anticipated corporate actions for the year including dates of when the financial statements will be published and other key financial highlights.
Companies that pay regular dividends also provide the payment dates and ex-dividend dates in advance. The dates of upcoming annual general meeting are also specified.
The 10 are listed along Athi River Mining Cement, Bamburi Cement, Deacons East Africa, Mumias Sugar Company which are either dormant, suspended, under administration or on the verge of delisting from the bourse.
The NSE and CMA joint circular issued last year had made it mandatory for listed firms to develop and submit a forward-looking calendar of corporate announcements along with their tentative dates as part of the initiative to enhance transparency and improve communication between the companies and investors.
“All issuers are now required to develop and submit a forward-looking calendar of corporate announcements. This calendar should detail all upcoming corporate events, along with their tentative dates,” said the circular.
“The aim is to provide investors with a clearer view of forthcoming corporate actions, enabling them to make more informed decisions and contributing to greater market predictability and stability.”
However, the circular did not specify any penalties for non-compliance. The lack of clear consequences could limit the effectiveness of the rule, even as the NSE and CMA seek to entrench a culture of timely and predictable corporate communication.
In markets like South Africa and the United Kingdom, such disclosures are standard practice, giving investors confidence that listed firms are predictable and professionally managed.
Ignoring the circular denies investors a clearer view of forthcoming corporate actions.
NSE and CMA had said the corporate calendar would enable investors to make more informed decisions and contribute to “greater market predictability and stability.”
In the circular, NSE and CMA said while they recognise that circumstances may necessitate changes to dates or event details, companies have to promptly update the calendars with the revised information so that the market remains informed with the most current and up-to-date information.
CMA had encouraged companies to make their corporate calendar publicly available through their websites and other communication channels.
Firms that are in compliance with the guidelines have been sharing with investors the dates for key events such as earnings announcements, shareholder meetings and dividend declarations.
