NSE-Web-Prospectus-2014

Chief Executive’s Statement
which individuals and companies can cushion themselves
against interest rate fluctuations, exchange rate volatility,
and commodity price changes while boosting liquidity in the
underlying assets. We believe that a more liquid market will
attract more capital, which can finance Kenya’s Vision 2030
ambitions and support East African businesses.
Going forward, NSE will need to balance the new ”for-profit”
and “revenue diversification” motives of its shareholders
and the continuing demands of all other stakeholders. As the
regional and domestic economies continue to expand, the
NSE as the leading regional stock exchange can only grow.
The financial performance of the bourse will be driven by
increases in the GDP growth rate, the market capitalization
to GDP ratio, as well as equity and bond turnover ratios.
I look forward to welcoming you as a shareholder of the NSE.
Dear Investor,
On behalf of the management and staff of the NSE, I would
like to congratulate all our stakeholders on this Offer and
Self-Listing. I also extend a warm invitation to all investors to
take advantage of this opportunity to become part owners
of the Exchange.
Mr. Peter Mwangi
Chief Executive
Over the years the company has grown and now has total
assets of Kshs 1.14 billion (USD 13.16 million). This includes
the value of its five-storey building at 55 Westlands Road,
Nairobi the location of the new NSE headquarters, “The
EXchange”.
The business generated a profit before taxation of Kshs
379 million (USD 4.37 million) for the full year ending 31
December 2013. The NSE declared a dividend of Kshs 49
million for the full year ending 31 December 2013 which
was double that for the previous year.
We have high expectations for the year 2014 and beyond.
We have already embarked on several initiatives that will
significantly grow and develop the market over the next 12
to 18 months. These are categorized as Equity Capital Market
Initiatives, Debt Capital Market Initiatives, New Market
Initiatives and Miscellaneous Initiatives and are detailed in
Section 9 of this Prospectus under Future Outlook.
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In particular, the NSE has invested in a state-of-the-art system,
in partnership with technology and market specialists,
to establish a world class derivatives exchange. This will
facilitate the trading of futures and options which are among
the most cost-effective and convenient means through