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Companies

Firms get one-month reprieve to file results

Nairobi Securities Exchange
The Nairobi Securities Exchange. Most publicly-traded firms were expected to have filed results by the end of this month. FILE PHOTO | NMG 

The Capital Markets Authority (CMA) has given Nairobi Securities Exchange-listed firms one more month to submit and publish their audited financial statements.

Most publicly-traded firms were expected to have met the deadline by the end of this month or April but the regulator has offered them the extension in light of the disruptions brought by the coronavirus.

CMA said in cases where reporting obligations are also required by other regulators such as the Central Bank of Kenya (CBK), companies should consult with those regulators.

Banks, for instance, report to both CMA and CBK and will require a green light from the two agencies to postpone publication of their results.

The move to relax compliance requirements comes as the spread of the coronavirus has severely restricted business meetings.

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Some companies have foreign directors whose ability to travel has been hampered by a ban on international travel by Kenya and other countries.

Other forms of communication including video or conference calls are seen as a means of facilitating board meetings but are an option only for companies that allow them in their articles of association.

CMA’s acting chief executive Wyckliffe Shamiah said the regulator has given the extension to all licensed intermediaries, issuers of securities to the public and collective investment schemes. However, firms that can complete and file their statements and publish the same within the regulatory timelines were encouraged to do so to ensure investors obtain information in a timely manner, CMA said in a statement.

The regulator also suspended other compliance requirements including the need to publish financial statements in two newspapers of national circulation.

This particular obligation has been waived until June 30. CMA added that companies can publish their results on social media and their websites besides those of the regulator and the NSE.

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