NSE admits Private Wealth Capital as a securities dealer

Nairobi Stock Exchange (NSE) Chief Executive Geoffrey Odundo. PHOTO | FRANCIS NDERITU | NMG

The Nairobi Securities Exchange (NSE) has admitted Private Wealth Capital Limited (PWCL) to act as an Authorised Securities Dealer (ASD) for fixed income securities listed on the bourse.

The exchange on Monday said PWCL, which has already received approval from the Capital markets Authority (CMA) to trade the securities and is the first non-bank ASD in Kenya, will also allow investors to carry out offshore bond trading through their platform.

This will, for instance, open a window for Kenyans to invest in the Eurobond market, where the government has listed four bonds since 2014.

An authorised securities dealer carries out the business of buying, selling, dealing, trading, underwriting or retailing of fixed-income securities.

“As a market, we are keen on supporting the growth of the fixed income market space in Kenya in line with our 2020-2024 strategy. We congratulate PWCL for the approval as an ASD and look forward to further partnerships,” said NSE chief Geoffrey Odundo.

The exchange hopes the move to bring in the specialised fixed income securities dealer will deepen the participation of retail investors in the market segment that has traditionally been dominated by institutional investors such as banks, pension funds, fund managers, insurers and parastatals.

Kenya has Treasury bonds worth Sh3.595 trillion in issue presently, making it the biggest asset class in the capital market, ahead of equities, which have a market capitalisation of Sh2.073 trillion.

PWCL will only deal with the bonds segment, unlike other market intermediaries such as stockbrokers and investment banks, which handle a mix of bonds and equities.

“Our approval will enable investors to enter and exit their bond investments more easily in the secondary market as a result of PWCL’s role as a liquidity provider,” said PWCL chief executive officer Kabaki Wamwea.

The firm has been operating as a fixed income trader, and financial advisor dealing in mergers, acquisitions, capital raising and funds management.

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