CE’s Speech during the bell ringing for new Kenya Airways shares at the NSE on 21st June 2012
The Permanent Secretary in the Ministry of Finance, Mr Joseph Kinyua;
The Chairman of the Board of Kenya Airways, Mr Evanson Mwaniki;
The Group Chief Executive Officer, Kenya Airways; Dr Titus Naikuni;
Other Kenya Airways Board Members present;
The Vice Chairman, Nairobi Securities Exchange, Mr Bob Karina;
Other board members of the Nairobi Securities Exchange present;
The Chief Executive, Nairobi Securities Exchange, Mr Peter Mwangi;
Distinguished Invited Guests;
All Protocols observed;
I am honored to be here today to witness the commencement of trading of the new Kenya Airways issued under the rights issue at the Nairobi Securities Exchange.
I am informed that Kenya Airways will use the funds raised through the rights issue to finance their business growth and expansion plans, especially down payment for the delivery of new aeroplanes.
I would like to commend Kenya Airways for choosing to use the capital markets to raise funds for business expansion and encourage other corporates to consider the same option.
Ladies and Gentlemen,
I am pleased to state that the Capital Markets Authority's role is to provide a facilitative environment for issuers, investors and/or market players to participate and thrive in the capital markets industry.
The Authority's Strategic Plan (2008-2012) steadily continues to be realized with the achievement of the following key milestones:
i. Overhaul of the entire capital markets legal framework through drafting of the new Capital Markets Authority Bill, 2011 and the Securities and Investments Bill 2011 both of which have already been submitted to the Minister for Finance;
ii. Policy and regulatory framework developed for demutualization of the NSE;
iii. A strong Capital Markets Authority that is proactive on Risk Based Supervision with a strong oversight regime;
iv. As advisor to the Government on policy issues and working with key capital markets stakeholders, lower cost of raising capital has been realized through reduced issuance processing time, automation, and granting of tax incentives.
As part of our mandate, we have also been pursuing our market development agenda to deepen the capital markets and increase investor participation by rolling out new products.
Ladies and Gentlemen,
The Authority is cognizant of the fact that housing remains an important challenge for Kenya and has made significant strides to promote the creation and listing of Real Estate Investment Trusts (REITs).The regulations to facilitate this are at an advanced stage of being finalized to be gazetted at the earliest opportunity in close collaboration with the Ministry of Finance.
As an Authority, we are keen to promote new capital markets products which will help us achieve the objective of deepening our capital markets by facilitating growth of areas such as Islamic capital market products.
We have noted the potential of the Islamic capital markets and are working with stakeholders including Muslims scholars to seek their input in drawing up a policy, institutional, and legal framework for the capital market and chart a way forward in developing a vibrant Islamic capital market in Kenya.
The development of a vibrant Islamic capital markets segment in Kenya is aligned to the Vision 2030 Economic Blueprint, where the capital markets are expected to play a pivotal role in mobilizing funds to support the Vision's flagship projects. We see the Islamic financial sector playing a key role in mobilizing funds towards achieving the Vision 2030 objectives by being an important source of the required funds.
Ladies and Gentlemen,
Ano ther area of focus this year is the establishment of a futures market focusing on currency, mineral, and energy derivatives. Plans are at an advanced to realize this objective, whose benefits will impact all sectors of the economy by addressing the current volatility of prices of commodities such as fuel.
As I conclude my remarks, let me indicate that I have confidence in the resilience and strength of our economy and our capital markets.
And finally on behalf of the Authority's Board, management and staff and the entire capital markets fraternity, we wish the Kenya Airways success in their business expansion plans.
Thank you for listening to me.