KA-INVESTOR
You can also read the full budget speech here and a PWC-Kenya Budget Bulletins here.- Increase in stockbrokers and investment banks minimum share capital from Ksh.5 million and Ksh.20 million to Ksh.50million and Ksh.250 million respectively by December 2010. This could see some mergers, acquisitions and entrance of foreign investors to achieve this new capital requirement.
- Industry players to publish half and full year (audited) financial statements in at least two national dailies (It’s about time we saw what this guys do)
- Monthly reporting to CMA and submission of quarterly portfolio reports
- Agents restricted to only one broker for easier scrutiny
- Approval from CMA before any change in the shareholders, Directors, CEO’s and other key personnel of a brokerage firm
- All brokers will be required to get an indemnity insurance of an amount not less than five times their daily average turnover to compensate investor losses due to irregularities. (the cover is a bit low and may not be able to cover all claims – from experience)
- As incentive to firms that list on the NSE, the listing fee will be halved to 0.15% from 0.3% of the value on issue. Similarly, withholding tax on long term bonds of 10 year or more maturity has been reduced to 10% from 15%. (this incentives are not good enough and no significant change in likely to be seen)
- Proposed amendments on the Retirement Benefit Act to limit investments by pension schemes (such as NSSF) to only invest in government securities and bonds from public institution could see reduced activity at the NSE.
