Close

STABLE FINANCIAL SYSTEM

NSE focus should be on post-Covid economic recovery - CS Yatani

CS invites NSE to partner with Government to embark on aggressive fundraising activities

In Summary

• A vibrant, well-functioning, efficient and stable financial system is a catalyst for broad-based sustainable economic growth and development.

• Financial market development offers additional growth and funding opportunities for local firms.

Nairobi Securities Exchange (NSE) Chairman Kiprono Kittony with Treasury CS Ukur Yatani during the handover of the NSE Chairmanship at the Exchange building on August 26, 2020.
Nairobi Securities Exchange (NSE) Chairman Kiprono Kittony with Treasury CS Ukur Yatani during the handover of the NSE Chairmanship at the Exchange building on August 26, 2020.
Image: COURTESY

The Ag. Chief Executive, Capital Markets Authority, Mr. Wickliffe Shamiah,

The Chairman, Nairobi Securities Exchange (NSE), Mr. Kiprono Kittony,

The Former Chairman, NSE, Mr. Samuel Kimani,

The Chief Executive, NSE, Mr. Geoffrey Odundo,

 

Ladies and Gentlemen

Good Morning!!!

It is a great honour and pleasure to join you today at this historic event in witnessing the handover of the chairmanship of the Nairobi Securities Exchange (NSE).

At the onset, let me take this opportunity to congratulate you, the new Chair, Mr. Kiprono Kittony for the trust and confidence investors have shown in you by giving you leadership position to steer this important organization, NSE to great heights of success.

I have no doubt that NSE made the right choice and were truly guided by wisdom to settle on the new chair particularly under the current turbulent times. Indeed, his revival and sustained sterling performance at the previously moribund organisation, the National Chamber of Commerce and Industry is admirable.

I would also like to acknowledge with deep appreciation the achievements of the NSE under the leadership of the outgoing Chairman, Mr. Samuel Kimani who effectively positioned the organisation as a critical link to capital for corporations in Kenya and the region at large.

 Ladies and Gentlemen,

As you may be aware, deep and liquid capital markets are not only essential ingredients but instrumental to supporting economic growth, creating domestic investment opportunities as well as attracting foreign and local capital.

Subsequently, a vibrant, well-functioning, efficient and stable financial system is a catalyst for broad-based sustainable economic growth and development.

Furthermore, financial market development offers additional growth and funding opportunities for local firms.

It also offers opportunities for international and domestic investors to access the markets of fast-growing African countries like ours.

Additionally, it mobilises savings and investors to support a country’s development aspirations. 

In pursuit of its noble vision, the Nairobi Securities Exchange has continued to play a catalytic role in supporting the government to raise capital to fund development programs and project in addition to recurrent expenditure.

I hasten to add that, generally, NSE has greatly supported businesses and entrepreneurs come together to buy, sell and trade shares for the purpose of providing capital to enterprises that need it.

 Ladies and Gentlemen,

In general, the Financial Services Sector (FSS) remains critical to achievement of our desired double-digit economic growth target of the Economic Pillar, which lies at the heart of Vision 2030 while also remaining critical in the realisation of Sustainable Development Goals (SDGs) on promoting sustained, inclusive economic growth, full and productive employment and decent work for all.

Further, it’s important to note that the sector is one of the critical focus of support in the achievement of the “Big Four” Agenda.

Ladies and Gentlemen,

Noting that we are in the midst of the novel Covid-19 pandemic, and I need to acknowledge the remarkable work undertaken by NSE that ensured that all services continued to remain available to our investors and issuers, as well as to supporting the fight against the pandemic.

As you now embark on your 2020-2024 Strategy, focus need to be on post-Covid 19 economic recovery and restoration of lost incomes to our companies. To achieve this objective, I invite NSE to partner with the Government to embark on aggressive fundraising activities so as to enhance the much required economic dividend as well as reduce the net domestic borrowing for the Government.

It’s important to note that NSE continues to be a critical partner in financing infrastructure not forgetting its key function of resource mobilisation for the Small and Medium Enterprises sector.

At this critical juncture, I would like to invite NSE to step up its collaboration with the Government as we take measures to reposition our capital markets and by extension the NSE as a Centre of excellence and gateway to the region and Africa at large.

This is our vision under the Capital Markets Master Plan (2014-2023) and the reason why we have established the Nairobi International Financial Centre (NIFC).

Ladies and Gentlemen,

The deployment of digital technology in all facets of financial services is an emerging area that has significantly enhanced and revolutionised financial services provision.

The use of Fintech has increasingly changed the interaction between providers and consumers of financial services. Fintech offers us the best chance of expanding financial inclusion and greater sharing of wealth in our nations.

There is a need to have a mechanism to have our retail investors continue investing in the NSE while complying with the laid down Ministry of Health directives mostly through digital platforms.

In conclusion, Ladies and Gentlemen, I wish to assure the NSE and the new Chairman of our support in steering the Exchange to new heights of success.

I urge you all to formulate economic recovery plans and if there is need for consultations do not hesitate to come to the National Treasury for engagements.

With those few remarks, I wish the upcoming Chairman of NSE a fruitful time during his tenure at the NSE.

May he steer NSE to greater heights and as I said earlier, we are operationalising the Nairobi International Financial Centre (NIFC) hence the need for close collaboration between the Government and NSE cannot be over-emphasized.

Thank you and God Bless You!