Nairobi Securities Exchange Plc

Dealing in shares commenced with trading taking place on a gentleman’s agreement with no physical trading floor. London Stock Exchange (LSE) officials accepted to recognize the setting up of the Nairobi Stock Exchange as an overseas stock exchange (1953).

The Nairobi Stock Exchange (NSE) was registered under the Societies Act (1954) as a voluntary association of stockbrokers and charged with the responsibility of developing the securities market and regulating trading activities. Business was transacted by telephone and prices determined through negotiation.

By 1968, the number of listed public sector securities was 66 of which 45% were for Government of Kenya, 23% Government of Tanzania and 11% Government of Uganda. During this period, the NSE operated as a regional market in East Africa where a number of the listed industrial shares and public sector securities included issues by the Governments of Tanzania and Uganda (the East African Community).

When the EAC finally collapsed in 1975, the Government of Uganda compulsorily nationalized companies which were either quoted or subsidiaries of listed companies.

The first privatization through the NSE, through the successful sale of a 20% Government stake in Kenya Commercial Bank. The sale left the Government of Kenya and affiliated institutions retaining 80% ownership of the bank.

The CMA was constituted in January 1990 through the Capital Markets Authority Act (Cap 495A) and inaugurated in March 1990. The main purpose of setting up the CMA was to have a body specifically charged with the responsibility of promoting and facilitating the development of an orderly and efficient capital market in Kenya.

NSE was registered as a private company limited by shares. Share trading moved from being conducted over a cup of tea, to the floor based open outcry system, located at IPS Building, Kimathi Street, Nairobi.

The CMA increased the initial paid up capital for stockbrokers from Kshs.100, 000 to Kshs.5.0 million while that for investment advisors was set at Kshs.1.0 million.

With the 1994 CMA Act (Amendments), it became mandatory that a securities exchange approved by the CMA be a company limited by guarantee. The number of stockbrokers increased by a further seven.

On February 18, 1994, the NSE 20-Share Index reached a record high of 5,030 points. The NSE was rated by the International Finance Corporation (IFC) as the best performing market in the world with a return of 179% in dollar terms.

The NSE also moved to more spacious premises at the Nation Centre in July 1994, setting up a computerized delivery and settlement system – DASS.

The CMA established the Investor Compensation Fund whose purpose was to compensate investors for financial losses arising from the failure of a licensed broker or dealer to meet their contractual obligations.

An additional eight stockbrokers were licensed in June 1995 and with the suspension of one stockbroker, the total number of stockbrokers was twenty.

Privatization of Kenya Airways where more than 110,000 shareholders acquired stake in the airline and the Government of Kenya reduced its stake from 74% to 26%. The Kenya Airways Privatization team was awarded the World Bank Award for Excellence for 1996, for being a model success story in the divestiture of state-owned enterprises.

With the objective of developing a code of conduct, promoting professionalism, and establishing examinable courses for its members as well as facilitate liaison with the CMA and the NSE, the members of the NSE formed the Association of Kenya Stock brokers (AKS).

The CMA published new guidelines on the disclosure standards by listed companies.

The CMA issued guidelines to promote good corporate governance practices by listed companies through the constitution of audit committees.

The Central Depository and Settlement Corporation Limited (CDSC) was incorporated under the Companies Act (Cap 486).

The East African Community Treaty was signed in Arusha, Tanzania between five countries, Burundi, Kenya, Rwanda, Uganda and Tanzania.

Five core shareholders of the CDSC signed an agreement and paid up some share capital.

The market at the NSE was split into the Main Investment Market Segment (MIMS), Alternate Investment Market Segment (AIMS) and the Fixed Income Securities Market Segment (FISMS).

The Central Depositories Act 2000 was operationalized in June 2003.

The central despository system was commissioned. For the first time in Kenya’s history, the process of clearing and settlement of shares traded in Kenya’s capital markets was automated.

The NSE implemented live trading on its own automated trading systems trading equities. The ATS also had the capability of trading immobilized corporate bonds and treasury bonds. The Exchange’s trading hours were increased from two hours (10:00 am – 12:00 pm) to three hours (10:00 am – 1:00 pm).

The NSE implemented its Wide Area Network (WAN) platform. With the onset of remote trading, brokers and investment banks no longer required a physical presence on the trading floor since they would be able to trade through terminals in their offices linked to the NSE trading engine.

The Nairobi Stock Exchange (NSE) announced the extension of trading hours at the bourse. Trading would commence from 9.00am and close at 3.00pm each working day.

In order to provide investors with a comprehensive measure of the performance of the stock market, the Nairobi Stock Exchange introduced the NSE All-Share Index (NASI).

The NSE launched the first edition of the NSE Smart Youth Investment Challenge to promote stock market investments among Kenyan youth.

The immobilized shares of Safaricom Ltd., commenced trading on the NSE after the trading session was opened in a colorful ceremony presided by H.E. President Mwai Kibaki. The Safaricom IPO increased the number of shares listed on the bourse to over 55.0 billion shares, from the previous 15.0 billion.

The NSE marked the first day of automated trading in government bonds through the Automated Trading System and uploaded all government bonds on the System.

The equity settlement cycle moved from the previous T+4 settlement cycle to the T+3 settlement cycle.

The business segments under which our listed companies are placed were reclassified. Equities were now under ten (10) industry sectors. Debt securities including preference shares were under three (3) categories.

The NSE together with FTSE International launched the FTSE NSE Kenya 15 and FTSE NSE Kenya 25 Indices.

The Nairobi Securities Exchange became a member of the Financial Information Services Division (FISD) of the Software and Information Industry Association (SIIA).

The Nairobi Securities Exchange entered into a Memorandum of Understanding with the Somalia Stock Exchange Investment Corporation (SSE), regarding the possibility of co-operating to establish a securities exchange business involving the trading, settlement, delivery of listed securities and other stockbrokerage activities.

The NSE Broker Back Office commenced operations with a system capable of facilitating internet trading improving the integrity of the Exchange trading systems.

NSE together with FTSE International launched the FTSE NSE Kenyan Shilling Government Bond Index. This was the first instrument of its kind in Eastern Africa and gave investors the opportunity to access current information and provided a reliable indication of the Kenyan Government Bond market’s performance.

UMEME Holdings Limited cross listed its 1,623,878,005 shares on the Main Investment Market Segment (MIMS) of the Nairobi Securities Exchange. It was the first inward cross listing of an East African company on the NSE since the incorporation of the East African Securities Exchanges Association (EASEA) on May 15 2009.

The Growth Enterprises Market Segment (GEMS) giving small and medium enterprises a great opportunity to access the capital markets was launched by Mr. Mugo Kibati, Director-General of Kenya Vision’s 2030 Delivery Board.

Centum Investment Company became the first company in East Africa to list an equity linked note, when its Kshs. 4.19 Billion Note Issue commenced trading on the Nairobi Securities Exchange (NSE) Fixed Income Securities Market Segment (FISMS).

The Nairobi Securities Exchange moved to its new residence outside the central business district located on 55 Westlands Road – The Exchange.

The first reverse takeover transaction in East Africa was completed when I&M Holdings began trading on the NSE. I&M Holdings used the reverse takeover of City Trust which was listed on AIMS to migrate the new firm to MIMS.

Moody’s Investors Service and the Nairobi Securities Exchange hosted the inaugural East Africa Credit Risk Conference in Nairobi.

Home Afrika, made history by being the first company to list by introduction on the Growth Enterprise Market Segment (GEMS).

The Nairobi Securities Exchange (NSE) and the Shanghai Stock Exchange (SSE) entered into a Memorandum of Understanding (MoU).

The Board of Directors of the Nairobi Securities Exchange admitted CBA Capital Ltd., and Equity Investment Bank Ltd., as trading participants.

As a result of its initiatives to increase company listings and diversify asset classes, the panel of distinguished judges for the 2013 Africa investor Index Series Awards, ranked the Nairobi Securities Exchange (NSE), the winner of the Most Innovative African Stock Exchange category.

The 60th Anniversary Celebrations of the Nairobi Securities Exchange kicked off with the Launch of the new NSE Brand and official opening of the Exchange. Our brand migration was informed by developments we are undergoing at the bourse.

The Nairobi Securities Exchange (NSE) received formal approval from the Capital Markets Authority (CMA) to operate as a demutualized entity. This is after the approval of the NSE’s final application which met the regulator’s requirements as stipulated in Section 5(3) of the Capital Markets (Demutualization of the Nairobi Securities Exchange) Regulations 2012.

The Nairobi Securities Exchange (NSE) received formal approval from the Capital Markets Authority (CMA) to offer its shares to the public through an Initial Public Offer (IPO) and subsequently Self-list its shares on the Main Investment Market Segment (MIMS) of the NSE.

The Nairobi Securities Exchange listed its 194,625,000 issued and fully paid up shares on the Main Investment Market Segment (MIMS) under a new sector – Investment Services of the bourse after a successful Initial Public Offering which sought to raise Kshs.627 million by selling 66 million new shares at a price of Kshs. 9.50 per share. 17,859 investors applied for 504,189,700 new shares worth Kshs. 4.789 billion; a subscription rate of 763.9%, garnering an oversubscription of 663.92%. Following its self-listing the Exchange becomes the second African Exchange after the Johannesburg Stock Exchange to be listed.

The Nairobi Securities Exchange was added as a constituent of the auspicious FTSE Mondo Visione Exchanges Index, the first Index in the world to focus on listed exchanges and other trading venues.

The Nairobi Securities Exchange launched a new system for trading corporate bonds and Government of Kenya Treasury Bonds allowing on-line trading of debt securities and is integrated with the settlement system at the Central Bank of Kenya. The system is more efficient, scalable and flexible, and can support trading in bonds that have been issued in foreign currencies.

The Nairobi Securities Exchange (NSE) and Korea Exchange (KRX) signed a memorandum of Understanding (MOU) in Korea, marking the beginning of collaboration between the Kenya and Korea Capital Markets.

The Sixtieth anniversary celebrations culminated with the Exchange hosting the 2014 African Securities Exchanges Association (ASEA) Conference and Annual General Meeting (AGM) from 23 – 25 November 2014 in Diani, Kenya the Conference was opened by His Excellency, Honourable William S. Ruto, Deputy President of the Republic of Kenya.

The NSE became the fourth African Exchange to launch Real Estate Investments Trusts (REITs) Market and consequently listed the first REIT, the Stanlib Fahari I-REIT.

The NSE received formal recognition as a Self-Regulatory Organization by the Capital Markets Authority.

The NSE became the first Exchange in the East African region to introduce Exchange Traded Funds (ETFs) and subsequently listed the Barclays New Gold ETF.

The NSE launched its incubation and acceleration program dubbed Ibuka (meaning ’emerge’ in Kiswahili) to offer companies an opportunity to grow their business and develop scalable and impactful business models.

The NSE launched revised listing rules incorporating listing requirements for Green Bonds, enabling the NSE to offer a new asset class to issuers and investors.

The NSE launched the NEXT Derivatives Market, becoming the second exchange in Africa to offer exchange‑traded derivatives. The launch enabled the NSE to commence trading of single stocks and index futures.

The NSE launched a new trading system provided by Millennium Technologies, a part of the London Stock Exchange Group.

NSE gears up to boost its data business through the appointment of a data monetization consultant.

Launched a dynamic and user‑friendly mobile app to enhance retail investors' participation in Kenya's capital markets.

AIB‑AXYS Africa commences operations in the Kenyan market.

The NSE launched the Unquoted Securities Platform, a market infrastructure for trading, clearing, and settlement of securities of unlisted companies.

The NSE Derivatives market (NEXT) launched Mini NSE 25 Share Index futures contracts designed to appeal to retail investors due to lower initial margin costs.

The NSE launched an ESG Disclosure Guidance Manual.

The NSE launches day trading as part of its strategy to enhance market liquidity.

The NSE introduced additional single‑stock futures on the NSE Derivatives Market on May 19, 2022. The addition brings the total number of single‑stock futures offered on the market to ten, expanding the range of securities available and providing investors with a broader universe of single‑stock futures to trade. The new single‑stock futures added to the derivatives market are: 1. NCBA Group Plc (NCBA) 2. The Co‑operative Bank of Kenya 3. Standard Chartered Bank Kenya 4. I&M Group Plc (IMHP).

The NSE hosted the inaugural NSE CFO Conference on June 21, 2022.

NSE PLC and Risk Insights announced the launch of their partnership to enhance sustainability among Kenyan companies through the provision of Environmental, Social, and Governance (ESG) services.

The NSE admitted Private Wealth Capital Limited (PWCL) as an Authorized Securities Dealer (ASD) for fixed income securities listed on September 19th, 2022. The admission followed the firm’s approval to operate as an ASD by the Capital Markets Authority.

His Excellency Hon. Dr. William Samoei Ruto PhD, C.G.H. President of the republic of Kenya made his maiden visit to the NSE during the Bell ringing Ceremony to mark the launch of the enhanced NSE Market Place held on 11th of October 2022.

The REITs Association of Kenya (RAK) hosted its 2023 RAK Annual Conference, aimed at building momentum and unlocking the power of REITs in East Africa. The conference, which covered topics such as legal and regulatory frameworks, market development, investment opportunities, innovations, investor education, public-private partnerships, sustainable and impact investing.

On Wednesday, March 22, 2023, Kenya’s oldest pension scheme, the Local Authorities Pension Trust (LAPTRUST) listed the first Income- Real Estate Investment Trust (I-REIT) by a pension fund on the NSE at a ceremony officiated by His Excellency Dr. William Samoei Ruto, C.G.H., President of the Republic of Kenya and Commander-in-Chief of the Defence Forces.

On September 4, 2023, the NSE launched two new market indices, NSE 10 Share Index (N10) and the NSE Bond Index (NSE-BI). The two indices track the performance of the equities market and bonds market respectively. This development followed extensive engagements with various stakeholders including potential issuers of structured products like the Exchange Traded Funds (ETF).

The REITS Association of Kenya (RAK) Hosted Its Flagship Conference, The 2023 RAK Annual Conference (1st November 2023).

On November 7, 2023 the NSE approved the admission of the Linzi Sukuk on the NSE Unquoted Securities Platform (USP) making the product the first Shari’ah compliant product to be admitted on the platform. The Linzi Sukuk, issued by Linzi FinCo Trust, a common law unincorporated trust, is a Kshs. three billion (Kshs. 3,000,000,000.00) Islamic secured residential based security with a maturity period of 15 years offering an internal rate of return of 11.13%. The proceeds from the issue will be used in the financing, design, construction, and commissioning of 3,069 institutional houses.

His Excellency Dr. William Ruto officiated the opening ceremony of the 26th African Securities Exchanges Association (ASEA) Annual Conference and its 30th Anniversary Celebrations at the Villa Rosa Kempinski Hotel in Nairobi.

Following the completion of Mr. Odundo’s tenure, the Board of Directors of the NSE announced the appointment of Mr. Mwiti as the new Chief Executive Officer of the NSE on May 2, 2024.

The NSE successfully hosted its 70th Annual General Meeting on Wednesday, May 29, 2024.

As a member of the East African Securities Exchanges Association (EASEA), NSE in partnership with other exchanges launched the East Africa Exchanges (EAE) 20 Share Index, marking a significant milestone in the integration and development of the region’s capital markets.

In a landmark milestone for Kenya’s capital markets, Linzi Finco LLP successfully listed the first Infrastructure Asset-Backed Security, valued at KES 44.9 billion, on the NSE.

Satrix, a leading provider of index-tracking investment products in South Africa, marked a historic milestone with the listing of the first Equity Exchange Traded Fund (ETF) on the NSE—the Satrix MSCI World Feeder ETF.