At least 20 or a third of the companies listed on the Nairobi Securities Exchange (NSE) risk forceful takeover by their majority shareholders - which in turn could lead to their delisting from the bourse - following changes to the law that now make it easier for top owners to compulsorily acquire minority investors.
The Statute Law (Miscellaneous Amendments) Act No. 12 of 2019 now allows shareholders with a 50 percent stake to make compulsory acquisitions of shares held by the remaining investors. The takeover threshold previously stood at 90 percent, a level that made it difficult for top shareholders of Unga Group and logistics firm Express Kenya to forcibly buy out minority investors. As a result, they were unable to delist the firms.
