An investment bank backed by deep-pocketed New York-based equity fund Kuramo Capital is headed on a collision course with the regulators after inviting clients short of cash to apply for loans to buy more shares on the Nairobi bourse.
Sterling Capital says it targets to lend clients Sh1 billion to buy stocks on blue-chip counters in a transaction known as margin trading, which the Nairobi Securities Exchange says is not allowed in absence of rules.
