Kenya to promote mobile-based IPO to boost participation of local investors

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E-Levy
Mobile

Kenya plans to promote mobile-based initial public offerings (IPO) for companies listing shares at the Nairobi Securities Exchange (NSE) in order to boost participation of local investors in capital markets, a government official said on Monday.

Luke Ombara, director of policy and market development of Capital Markets Authority, told a forum in Nairobi that the use of the mobile-based platform will leverage the widespread availability of smartphones to bring more investors into the capital markets.

“Through the use of mobile-based IPO we hope to reduce reliance on foreign investors in the capital markets,” Ombara said during a conference on Africa’s financial markets.

He said that the technology will reduce the nation’s exposure to shocks in case foreign investors exit the local bourse.

According to the capital market regulator, Kenya’s laws already allow the use of mobile-based platforms for trading in equities.

Ombara observed that the use of technology is part of the post COVID-19 recovery strategy for the capital markets. Enditem

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