Private limited companies that list in the Nairobi securities exchange will have their tax sins forgiven. This will happen once the companies declare their interest to be publicly listed. The Nairobi securities exchange has been grappling with low listing having listed their last company over 10 years ago. This low turn out by companies was experienced as Kenya endured a highly criminalised tax collection system.
While speaking at the bell ringing ceremony, The president indicated the need to have a robust Securities exchange. He pledged to have over 10 state corporations that are mature listed in the NSE. According to the president it is high time that the government supports the listing of private companies in the NSE.
The president went on to say that”I have asked the ministry concerned that between five and ten public enterprises that are mature should be listed in the next 12 months. I expect that the private sector will also work with the capital markets so that we can also have companies from the private sector listing in the Nairobi Stock Exchange,” he said.
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The Kenya Kwanza Government is also keen on exploring the idea of domestic bonds. In the president’s words,the government can be able to borrow from the Nairobi securities exchange to fund it’s programs. This domestic bonds will help spur listing in the NSE.
Private companies in Kenya fear listing in the NSE due to tax issues that may arise. The president went further to say that his administration is willing to work with private companies and will even forgive this “Tax sins”.
Currently, Kenya enjoys the presence of highly profitable companies that are not listed in the Nairobi securities exchange. In developed nations once companies attain a certain level of success they seek to become publicly listed companies. This listing allows business to access capital from the public.