Kiprono Kittony breaks down the NSE’s half-year results & COVID-19 impact
The NSE 20 Share Index declined by 0.3 per cent or 5.32 points to 1,743 from the previous 1,748. The 25 Share Index on the other hand increased to 3,071 or by almost 1 per cent from the previous 3,044 points yesterday. The Chairman of the Nairobi Securities Exchange, Kiprono Kittony joins CNBC Africa to look at the bourse’s half year results.
Thu, 27 Aug 2020 11:36:22 GMT
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AI Generated Summary
- Kittony outlines plans for additional listings and partnerships to drive NSE growth
- The NSE's financial performance amidst COVID-19 remains positive, with increased traction in recent weeks
- Focus on good governance and strategic partnerships key to navigating global economic impact
The Nairobi Securities Exchange (NSE) has faced a mixed bag of results in the first half of the year, with the NSE 20 Share Index declining slightly by 0.3% while the 25 Share Index showed a promising increase of nearly 1%. Despite these fluctuations, the newly appointed Chairman of the NSE, Kiprono Kittony, remains optimistic about the future prospects of the exchange amidst the challenges posed by the global pandemic. In an exclusive interview with CNBC Africa, Mr. Kittony shared his vision for the NSE and addressed the impact of COVID-19 on the market.Kittony, speaking from the bourse's offices in Nairobi, emphasized the importance of the NSE in the Kenyan capital market and outlined his goals for his tenure as Chairman. He expressed confidence in the vibrancy of the Kenyan capital market, highlighting the 60-plus companies listed on the exchange and the active participation of investors. Despite the market sentiments being on a decline globally, Kittony sees significant opportunities for further growth and expansion.In his vision for the NSE, Kittony emphasized the focus on additional listings, engaging with the government's privatization commission, and encouraging large private enterprises to list on the market. He mentioned plans to review incentives for listings and reiterated the positive outlook for the future. Despite the challenges brought about by COVID-19, Kittony revealed that the financial performance of the NSE had not been as bad as anticipated. In fact, there has been increased traction in recent weeks, leading him to believe that a strong full-year performance is achievable.The impact of the global pandemic on various sectors was also discussed during the interview. Kittony acknowledged the adverse effects of COVID-19 on organizations worldwide, particularly those in the tourism, fast-moving consumer goods, manufacturing, and transport sectors. He highlighted the NSE's strategic pillars of sustainable business growth, operational excellence, people development, and strategic partnerships as key focus areas to navigate through these challenging times.Kittony underscored the importance of good governance in ensuring long-term profitability and expressed the NSE's commitment to enabling Kenyan companies to access green climate funding. He emphasized the need to deepen strategic partnerships within the East and Central Africa region and strengthen linkages with other stock exchanges to leverage the momentum created by the African Continental Free Trade Area (AfCFTA).The discussion also touched on the appointment of a new Auditor General in Kenya and its potential impact on auditing practices for government-owned organizations. While clarifying that the NSE is not within the purview of the Auditor General, Kittony lauded the government's commitment to accountability and good governance. He viewed the appointment as a positive step towards ensuring proper audit practices and effective utilization of taxpayers' funds.