Kenya is looking to cut on foreign borrowing by raising capital locally via the capital market, Treasury cabinet secretary Ukur Yatani has said.
Speaking when the incoming Nairobi Securities Exchange (NSE) chairperson Kiprono Kittony received the mantle from his predecessor, Samuel Kimani, Yatani said the capital market has immense potential to cost-effectively raise capital for budgetary and infrastructural support.
"As you are aware, we have done away with commercial borrowing. We also don’t want to burden people with taxes. We now want to tap into virgin opportunities presented by the capital market to raise funds and grow our economy,’’ Yatani said.
He promised to work hand in hand with the incoming chairperson to stimulate the Nairobi bourse, saying that it is one of the economic indicators.
He added that the Nairobi International Finance Centre (NIFC) board has been put in place ready for the rollout of the financial hub, challenging NSE to be ready to tap into opportunities to be presented.
Kittony took over from Samuel Kimani who stepped down as chair of the board on July 13 after holding the position since 2016. He remains on the board as a non-independent director for one more year.
Kittony who has been on the NSE board as a non-executive member since 2018 said he is going to focus on post-Covid-19 recovery, promising to work towards ending listing dry spell at the Nairobi bourse.
"We can only discover opportunities at NSE through more listings and increased local participation. We have put the right strategies in place to help us realise this,’’ Kittony said.
Kittony who was instrumental in reviving and stabilizing the Kenya National Chambers of Commerce and Industry (KNCCI), where he served two terms, added that he is keen to see the country's capital markets actively participate in growing the economy.
He is credited for ending boardroom wrangles and fights which had characterised KNCCI for long; this made the chamber regain international repute.
He also pledged to work closely with exchanges in the region and the African continent at large.
The Nairobi bourse which has a market capitalization of Sh2.25 trillion and 65 listings is the leading bourse in East Africa.
“I am very confident that in line with our strategic plan, the exchange will continue to further entrench its vision through continuous product innovation and technology enhancement,” he said.
The outgoing chairman pledged to support his successor towards expanding NSE.
"Kittony’s leadership skills, experience and wealth of knowledge will be instrumental in driving NSE’s 2020-2024 Strategic Plan aimed at deepening the Kenyan Capital Markets. He got my full support,’’ Kimani said.
Kittony currently serves as the chair of the Credit Reference Bureau Kenya Limited, AAR Insurance Limited, Mtech Limited, and Radio Africa Group.
He also serves on the Business Advocacy Fund, and also sits on the advisory council of the International Fund for Health in Africa an Amsterdam based private equity fund, and is one of two representatives in the Global Council of the World Chambers Federation.