Capital Markets

Regulator to lower cost of listing on Nairobi bourse

nse-floor

Nairobi Securities Exchange trading floor. PHOTO | NMG

The Capital Markets Authority (CMA) is considering lowering fees for listing on the Nairobi Securities Exchange (NSE) to attract more investors.

The planned changes follow a study by investment adviser RisCura which showed that prohibitive costs had led to “market failure” relating to Initial Public Offerings (IPOs) on African stock exchanges.

The initial and annual fees charged on the NSE Main Investment Market Segment is 0.06 per cent of the market capitalisation subject to a minimum of Sh200,000 and maximum of Sh1.5 million.

Similarly, 0.06 per cent of the value of the securities to be listed subject to a minimum of Sh100,000 and a maximum of Sh1,000,000 is charged as initial fees on those seeking to list in the alternative Investment Market Segment.

"In line with CMA’s aspiration to be a responsive regulator, Management has been on a journey of reviewing a number of regulatory provisions to align them to current and the ever-evolving capital raising and listing realities and is currently at the tail end of overhauling its Public Offers and Listing Disclosure (POLD) and Collective Investment Schemes (CIS) Regulations," said the CMA yesterday in a market report.