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#SMEFest2016: NSE calls on local companies to list on GEMS
The call was made by the NSE CEO, Mr. Geoffrey Odundo during the SME Fest 2016, held at KICC. The…
The call was made by the NSE CEO, Mr. Geoffrey Odundo during the SME Fest 2016, held at KICC. The event provides SMEs with a unique opportunity to learn global best practices for business network and develop relationships with prospective partners further enhancing their growth potential.
“Small and Medium enterprises (SMEs), contribute about 45 per cent of Kenya’s GDP, offering employment to the largest percentage of the Kenyan population and therefore needs to call on the SMEs to get listed under GEMS. So far we still have four local firms listed The NSE therefore remains committed to enabling the growth of our SME’s through initiatives such as the SME FEST,” said NSE chief executive Geoffrey Odundo.
The Growth Enterprise Market Segments (GEMS) was launched in January 2013 by the Nairobi Securities Exchange (NSE) to provide more options for SMEs finance, especially long-term funding. The GEMS provides favorable listing requirements that were tailored for SMEs. GEMS can admit companies that have been in operation for only a year.
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From 2015, GEMS has had four listed firms. The NSE plans to increase this to 19 listings by 2017, and as per the Capital Markets Master Plan, that should rise to 39 listings by 2023
GEMS enables growing firms, to raise substantial initial and ongoing capital, while benefiting from increased profile and liquidity within a regulatory environment designed specifically to meet their needs.
Entrepreneurs interested in listing under GEMS require a minimum authorized issued and fully paid up share capital of Kshs. 10 million, at least 100,000 shares in issue, adequate working capital for 12 months after listing, within 3 months of listing at least 15% of the shares must be held by not less than 25 shareholders excluding employees of the issuer or family members of the controlling shareholder, and audited accounts for 1 year of operations prior to listing.
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The Nairobi Securities Exchange (NSE) also announced a Kshs 300,000 sponsorship towards the inaugural SME FEST- Growth Capital session.
“The NSE sponsorship of the “Growth Capital” Session during the SME Fest 2016 will enable entrepreneurs present, to understand the benefits of listing on the Growth Enterprise Market Segment (GEMS) providing SMEs with a unique opportunity to bolster their capital base, facilitating their development strategies and in turn promoting our Country’s economic growth,” he concluded.