Nairobi Securities Exchange

The following is selected information on the profile of the NSE, senior management and other aspects of operations:

Base Profile

No

Item

Details

1

Exchange operations

1920s but formally from 1954

2

Membership

Founding Member of African Stock Exchanges Association and Associate Member of World Federation Exchanges

3

Time Zone

Greenwich Mean Time + 3 Nairobi

4

Address

1st Floor, Nation Centre, Kimathi Street, PO Box 43633-00100, Tel: 254-20-2831000- Nairobi

5

Website

www.nse.co.ke

6

Trading Days

Monday, Tuesday, Wednesday, Thursday, Friday

7

Trading

Automated Trading System

8

Trading Access

Wide Area Network  and Local Area Network (Backup)

9

Access Rights

…… CMA Domestic Licensed Investment Banks and ……Stockbrokers

10

Trading Hours

9:00 a.m. to 3:00 p.m.

11

Trading Currency

Kenya Shilling

12

Key Regulations

  • Capital Markets Act, Cap 485A and related regulations 
  • CDSC Regulations
  • NSE Trading Rules
  • NSE Listing Manual 

13

Total No of Securities

……  as of 31 March 2013

14

No of Segments

3 with 4th launched in December 2012

15

No of Indices

5

16

Reports

  • Daily Market Report
  • Monthly Bulletin
  • Exchange Magazine
  • Annual Report

17

Data Vending

Yes

18

Settlement Procedure

Delivery vs Payment

19

Delivery

Automated Delivery System

20

Settlement

via Clearing House

21

NSE Broker Back Office

Automated back office system that enables senior management to monitor and audit activities through suitable alerts and exception reports;

22

Risk Mitigation

  • Investor Compensation Fund
  • Guarantee Fund
  • Settlement Limits

                Source:  NSE

Equities Profile

The listed shares traded are ‘ordinary shares’ which have different par values which range from  Kshs 0.10 to Kshs 100/-.  Share price range from Kshs 2.05…….to Kshs 493.00…as at 31st December 2012…. .

No

Item

Details

1

No of Securities

61 Equities.…… as of 31 December 2012

2

No of Segments

3 with 4th launched in December 2012

3

Segments

  • Main Investment Market Segment 
  • Alternate Investment Market Segment
  • Growth Enterprise Market Segment

4

Main Investment Market Segment  Sectors

......... namely  Automobile & Accessories; Banking;  Construction & Allied;  Energy & Petroleum;  Insurance;  Manufacturing & Allied Sector;  Telecommunication & Technology; Agricultural, Commercial & Services, Investment

5

Market Capitalisation

Kshs:1,272,002,229… (USD 14,778 at 86/- per dollar………….) as of 31 December 2012

6

Indices

  • NSE 20 Share Index 
  • Nairobi All Share Index (NASI)
  • FTSE NSE Kenya 15 Index
  • FTSE NSE Kenya 25 Index

7

Indices Base

  • NSE 20 Share Index  (Base 100:1966)
  • Nairobi All Share Index   (Base 100: January 2008)
  • FTSE NSE Kenya 15 Index  (Base 1st Jan 2008 =100…….:…….)
  • FTSE NSE Kenya 25 Index  (Base 1st Jan 2008 =100…….:……..)

8

Big 5 Listees

  • East African Breweries Ltd
  • Safaricom Ltd
  • Kenya Commercial Bank Ltd
  • Equity Bank Ltd
  • Barclays Bank /

controlled 52.9%……% of the total equity market capitalization as of 31 December 2012

9

Immobilisation Level

41.91% as of 31 December 2012

 

10

Delivery, Settlement, Registration

Provided by independent company Central Depository and Settlement Corporation Limited in which NSE has 22.5% shareholding

11

Settlement Procedure

Delivery vs Payment

12

Delivery

Automated Delivery System

13

Settlement

via Clearing House at Commercial Bank

14

Settlement Cycle

T+3

15

Risk Mitigation

  • Investor Compensation Fund
  • Guarantee Fund
  • Settlement Limits

16

Taxation

  • Capital gains tax not applicable
  • 5% withholding tax for local investors  (including East African invstors)
  • 10% withholding tax for foreign investors

Source:  NSE

Bonds Profile

No

Item

Details

1

No of Securities

60 Treasury bonds and 9 corporate bonds…… as of 31 December 2012

2

No of Segments

2 – Normal and  Infrastructure bonds as a segment

3

Segments

Fixed Income Securities Market Segment  

4

Market Capitalisation

Kshs n/a………(USD………….) as of 31 December 2012

5

Types of Listees

  • Government of Kenya Bonds
  • Corporate Bonds/Notes
  • Preference Shares

6

Mix

Government of Kenya Bonds contributes over …..% of the market capitalization while Corporate Bonds is the balance ……..%

7

Index

FTSE NSE Kenyan Shilling Government Bond Index

Base date 01st Jan 2012 = 100

 

8

Immobilization Level

  • Government of Kenya Bonds is 100% as of 31 December 2012
  • Corporate Bonds is 62.45 % as of 31 December 2012

9

Maturity

From 1 year to 30 years

10

Interest Rate

Floating, fixed, combination

11

Yield Curve

Available from ………….

12

Delivery, Settlement, Registration

Provided by Central Bank of Kenya

13

Settlement Procedure

Delivery vs Payment

14

Delivery

Automated Delivery System

15

Settlement

via Clearing House at Central Bank of Kenya

16

Settlement Cycle

T+3  (T+1 and T+2 is possible)

17

Risk Mitigation

  • Guarantee Fund - For Corporate Bonds
  • In Government bond trading the broker in most cases does not receive cash; the cash is paid to the seller directly.

18

Taxation

  • 15% withholding tax on interest
  • 10% withholding tax on interest on bonds that are ….……………………..
  • 0% withholding tax on interest for infrastructure bonds

Management

Mr. Peter Mwangi - Chief Executive

Mr. Peter Mwangi is the Chief Executive of the Nairobi Securities Exchange. He is also a Director of the Central Depository and Settlement Corporation in Kenya, a Member of the Executive Committees of both the East African Stock Exchanges Association (EASEA) as well as the African Securities Exchanges Association (ASEA). Before joining the Exchange, Peter was the Managing Director of Centum Investment. Centum is the largest publicly quoted investment company in the East African region. Peter holds a Bachelor of Science degree in Electrical Engineering from the University of Nairobi. He is a Certified Public Accountant of Kenya and a CFA charter holder.

Terrence Adembesa – Manager Product and Business Development

Terry is currently the Manager - Product & Business Development at the NSE with key responsibilities in the development and implementation of new products and markets and the management of information services for the Nairobi Securities Exchange. Prior to joining the NSE, Terry worked for the Financial Advisory arm of the Co-operative Bank (K) and as the Chapter Manager at the Enablis Entrepreneurial Network. Terry holds a Bachelor in Business Administration (cum laude) majoring in Management from the University of Eastern Africa Baraton and is currently pursuing a Global Executive MBA at the United States International University.