While investors burn or run
Fresh off the appointment of a new chairman of the Capital Markets Authority, the owners of the Nairobi Stock Exchange welcomed him with another pledge to:
-Cap broker ownership of the stock exchange (NSE) at 40%
– Reinforce compliance and supervision through implementation of a risk based supervisory approach yada yada yada…..
– Deal with the findings of the PWC Forensic Report on Nyaga Stockbrokers once the report is received from the CMA i.e. they officially haven’t seen it!
So they throw the ball back to the Government (to fast track the demutualization process – and what this entails) and the CMA (new Chairman to act on the report) while investors rush back and forth like headless chicken changing brokers in search of the one honest broker left in Nairobi, while also yearning to return to the good old days when share certificates were kept in bank vaults or under mattresses.
The long arm of the law is slowly catching up with those who sell investors’ shares. I know its happening. Some employees of some brokerage firm got fired. Some have gone under but they aint off the hook. Though the firm is trying its best, they might never get to recover all the money. And am not talking about the ones you know are under receivership, its happening undercover because the firm does not want to attract scrutiny by CMA, NSE, Media and the government. I once stated in this blog what was happening in that firm I dont know if anybody took it seriously. But it gives me a ray of hope that we might just improve the market
I agree that the problem with NSE is dishonesty. We can have all the rules and regulations but if no one is adhering and/or enforcing, then it is a waste of time.
I will stay out of the NSE until the day someone is successfully prosecuted and jailed for what is happening in the market.
@Ssembonge, you can find a way around dishonest stockbrokers by using a custodial bank.
Barclays has custodial services and what this does is take out your relationship with brokers and hold Barclays responsible for your shares / transactions etc.
It will cost a bit more (2%) levied annually on your assets but there it is a lot safer.
We have too many old skool dudes at the NSE. Let the falls continue mpaka they move on…
Custodians is the way to go if you don’t trade often.
What’s the point of caping ownership to 40%?
If I want to start a brokerage company and own it with my children (all 100% of it), I should be allowed to do that.
The issue is not ownership, it’s a weak rule of law system that exists within the entire country.
Micah Cheserem does not have prosecutorial powers, so essentially, all he will be doing is making recommendations.
If the brokers chose to ignore his recommendations, what’s he going to do?
Amos Wako is a board member at the NSE.
Hilarious
oopps, I meant board member at the CMA
Amos Wako is the longest serving goverment offical in Kenya.
He is the only other person in Kenya who is above the law (having the power to issue nulle presequi per whims)
He has subverted justice for Kenyans many times and has the qualities all dictators yearn for.
Its a shame that it took a foreigner to tell our Government what ordinary kenyans knew and wept about for so long!
Banks, off topic, but did you know your blog is worth US$15,242.58? http://tinyurl.com/behqbd
I had to shed most of my investiment portfolio after realising that one of the stock brokers in Nairobi had sold some of my shares without my consent indeed its such a crazy idea to spend millions educating the youths- graduates on how to become future investors in unregularized NSE. CAN SOMEONE STAND UP COZ OUR INSTITUIONS ARE ALL GOING TO THE DOGS INCLUDING HIGH PROFILED INSTITUTIONS AS THE PRECIDENCY. ARE KENYA’S SERIOUS?
REVOLUTION IS THE NEXT PHASE NOT THAT AM PREDICTING DOOM BUT KEENLY LOOKING AT EVOLUTIONARY STAGES SURELY I CAN BET THAT UNFORTUNATELY SOON WILL BE THERE.
franky
The problem wit kenya is with our laxity with the judiciary for not administering justice to offenders,executive for not effectively investigating and procecuting the gvt for just looking and saying nothing.look at
CMA,NSE,STANDARD ASSUARANCE,NCPB AND MANY MORE