Kenya firms seek to cross-list in South African bourse

Nairobi Stock Exchange. Several Kenyan firms have cross-listed at the Tanzania and Uganda stock markets. Photo/FILE

Consultations are going on that will see companies listed at the Nairobi Stock Exchange cross-list at the Johannesburg Stock Exchange (JSE).

JSE business development manager in charge of African desk Geoff Musekiwa said the negotiations with various stock markets in Africa, including the NSE aim at allowing companies with a market capitalisation of at least Rands 500 million (Sh5 billion) to list at the biggest stock market in Africa. 

Successful firms will list at the JSE Africa Board which is part of the JSE main market segment launched in February this year. 

For a firm to list, must be based in Africa or most of its operations be based on the continent. 

It must meet the Africa Board listing requirements and appoint a JSE approved sponsor to guide the process.

Mr Musekiwa said they have held talks with stock market players in Kenya, Zambia, Zimbabwe and Tanzania. 

“We have met with Mr Peter Mwangi (NSE CEO) but we could not see Ms Stella Kilonzo (Capital Markets Authority CEO) because she was engaged elsewhere but we left some documents with her office,” Mr Musekiwa told the Daily Nation during a trip to the bourse in Johannesburg by journalists attending the 3rd Standard Media Forum. 

The listing firm will retain its local listing with the costs depending on the monetary value of the listed securities. 

Currently, Kenya Commercial Bank, Kenya Airways, Jubilee Insurance and East Africa Breweries are also listed at the Tanzania, Uganda and Rwanda stock markets. 

Mr Musekiwa said companies that list at the JSE will have access to a market where they can raise more capital in Africa and have access to local as well as international investors.

“It is part of our efforts to promote the stock markets in Africa given their significance in economic development while enabling our firms to grow,” said Mr Musekiwa. 

Already, a Namibian financial services firm, Trustco, has listed at the JSE and is in the process of raising R.200 million (Sh2 billion) for its expansion programme. 

Mr Musekiwa, however, admitted that the low liquidity, mixing ownership and management and sovereignty, and territorial pride are some of the challenges they are facing. 

“It is understandable because even as JSE, we were not happy when five of our companies listed at the London Stock Exchange but a few years down the line, we are happy,” he said.