Kurwitu Ventures Limited, a financial firm that adheres to Shariah principles, has submitted a request to withdraw from the Nairobi Securities Exchange (NSE) following almost a decade of inactivity in trading.
In 2014, the company was included in the Growth Enterprise Market Segment (GEMS) initiative, along with Home Afrika, Nairobi Business Ventures, Flame Tree, and Atlas. This segment primarily focuses on small and medium-sized enterprises.
However, in 2017, it was suspended due to non-compliance issues. The Nairobi stock exchange aimed to attract at least three to four companies every year for this segment, as per its 10-year Capital Markets Master Plan of 2014.
GEMS offers lower entry requirements for companies seeking to list, which is relevant to the fact that the firm, which has never been profitable since its listing, reported a loss of KES 625,771, matching the figure from the previous year.
Despite having total assets worth KES 552.1 million, the firm is deemed technically insolvent since its total liabilities amount to KES 503.4 million, nearly equal to its assets.
The board of Kirwitu ventures has applied for delisting of its share from the Capital Market, according to a financial document viewed by Star.
Although the firm has been dormant, its share value at the bourse remains high at KES 1,500, which is a gain of KES 250 from the listing price of KES 1,250.
Kurwitu Venture’s decision to exit from NSE is a significant setback for CMA, especially considering the 17-year listing drought they are experiencing.
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