The Kenyan economy has experienced significant growth in many key sectors such as the Capital Markets. This growth has been attributed to among others the introduction of new vehicles to promote investment. These new products are intended to deepen the market by providing new investment opportunities to attract both local and foreign investors.
The introduction of the Growth Enterprise Market Segment (GEMS) at the Nairobi Securities Exchange (NSE) is a welcome platform that is aimed at supporting Small and Medium Sized Companies (SME’s) to raise their initial and continuing capital. The SME’s sector accounts for about 40% of the country’s GDP.
The passing of Real Estate Investment Trusts (REITS) Regulations is expected to revolutionize the financing of real estate projects in Kenya and spur further growth in the real estate sector. REITS are expected to provide investors with high yields and attractive tax advantages
Amendments to the Capital Markets Act to anchor in the Derivatives Market have been passed by Parliament and await Presidential Assent. Of note is that the NSE will be authorized to establish a derivatives market thus deepening the capital markets.
We are established leaders in Capital Markets transactions. We have also advised in the set-up of new products in the Nairobi Securities Exchange (NSE) and the Capital Markets. In particular we advised on the formation of the GEMS Market and are currently advising on the set -up of a Derivatives and Futures market as well as the establishment of Exchange Traded Funds (EFT’s) Our firm has played a leading role in the shaping of regulatory framework in the sector.