Remarks by the Acting Chief Executive during the commencement of trading of new NIC Bank shares at the Nairobi Securities Exchange


Minister for Finance, Hon. Njeru Githae

The Chairman of NIC Bank;

The Chairman and Board members of the Nairobi Securities Exchange present;

The Group Managing Director of NIC Bank and Directors of NIC Bank present;

The Chief Executive of the Nairobi Securities Exchange;

The Chief Executive of the Central Depository and Settlement Corporation and Members of the CDSC board present

Members of the transaction team;

Representatives of the media

Ladies and Gentlemen;

I express my appreciation to be invited to participate in the ceremony to mark the commencement of trading of the new NIC Bank shares at the Nairobi Securities Exchange. This rights issue is an important milestone given it achieved a subscription level 338% by mobilizing Ksh7 billion against a target of Ksh2 billion.

NIC Bank had a rights issue in 2007 of Kshs1.2 billion, whose proceeds were used to fund expansion plans which included entry into Tanzania, branch network expansion, among other initiatives. This is clear message of confidence the shareholders have in NIC Bank and the capital markets as a whole.

The additional capital raised through the rights issue will be used to fund the expansion of the business, both locally and regionally including entry into Uganda as the bank seeks to expand its footprint across the East African region. In coming to the capital markets to raise funds, NIC is contributing is supporting the growth of the financial sector through both the banking and capital markets subsectors.

Ladies and Gentlemen;

The NIC Bank rights issue comes at a time when there are ongoing efforts to improve linkages within the capital markets in East Africa. The ongoing capital markets regionalization infrastructure project targets the strengthening of linkages between the stock exchanges and the depository systems in order to enhance access for investors and issuers and is also seeking to harmonize the payment systems in order to make settlement of trades much easier. This is expected to make the regional capital markets much more vibrant.

The initiative towards harmonizing of the legal framework will also lead to benefits such as mutual recognition of market intermediaries. In this regard, a regional certification programme is being rolled out to ensure that all market intermediaries in the regional capital markets operate to the same standards and investors are assured of the same level of service across all the countries.

Ladies and Gentlemen;

As the move towards full regional integration continue in earnest, it is important for Kenya to leverage its position as the regional financial hub, with the capital markets as a key pillar.

This is in line with the ambitions of setting up an International Financial Centre in Nairobi, as projected in the Vision 2030 Economic Blueprint. 

The capital markets are a key segment within the financial services sector, and are expected to play a pivotal role in mobilizing resources to facilitate the realization of the transformation of Kenya into a middle income country by the year 2030.

I would therefore like to reaffirm the Authority's commitment to providing a facilitative environment for issuers, investors, and market players to participate and thrive in the capital markets industry. The Authority remains focused and committed to ensuring the capital markets play their rightful role in facilitating the realization of the Vision 2030 objectives.

On behalf of the Authority’s Board, Management, and Staff and the entire capital markets fraternity, we wish NIC Bank success in their business expansion plans.

Thank you.

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