President William Ruto has announced the government’s promise to privatise ten companies in the next year through the stock market to end the six-year listing drought at the Nairobi Stock Exchange (NSE).
President William Ruto said the government plans to bring five to ten companies to the market through initial public offerings (IPOs), urging the private sector to also list at least five firms at the Nairobi Securities Exchange (NSE).
The government has previously earmarked 26 companies for privatisation, including the Kenya Ports Authority and Kenya Pipeline alongside loss-making lenders, collapsed sugar millers and state hotels that have been run down over the years.
The President hopes listing of government parastatals will boost the NSE, which has not had an IPO since October 2015, when the Stanlib Fahari REIT was listed.
The last successful privatisation by the government was the Safaricom initial public offering in 2008.
Listing of companies on the NSE allows shareholders to transact in the shares of the company and share risks and benefit from any increase in the organizational value.
Currently, the bourse has 63 listed stocks.
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