The Board of Directors of the Nairobi Securities Exchange have declared a special dividend of Kes 0.50 per ordinary share at its meeting held on 26th November 2021.
The board has fixed 17th December 2021 as the record date for determining the members entitled to receive the special dividend.
“The payment is subject to witholding tax, where applicable and will be paid by 31st December 2021 to members on the register at the close of business on 17th December 2021.” The company’s CEO Geoffrey O. Odundo noted in a statement to shareholders.
Nairobi Securities Exchange Financials
The Nairobi Securities Exchange (NSE) reported an unaudited Half-Year Net Profit of Kes 77.4 Million, a 30% reduction from Kes 110.7 Million for the six months that ended on 30th June 2020.
The Group’s revenues also fell 5% from Kes 292.4 Million in the six months ended 2020 to Kes 276.5 Million in a similar period in 2021.
The Exchange recently rolled out day trading on 22nd November 2021 as part of a strategy by the bourse to enhance market liquidity as well as increase investor participation in the local stock market.
This came after the Capital Markets Authority (CMA) announced it was considering lowering fees for listing on the Nairobi Securities Exchange (NSE) to attract more investors.
After a study by an investment adviser, RisCura showed that prohibitive costs had led to “market failure” relating to Initial Public Offerings (IPOs) on African stock exchanges.
Currently, the initial and annual fees charged on the NSE Main Investment Market Segment is 0.06 per cent of the market capitalization subject to a minimum of Kes 200,000 and a maximum of Kes1.5 million.
Consequently, 0.06 per cent of the securities’ value to be listed subject to a minimum of Kes 100,000 and a maximum of Kes1,000,000 is charged as initial fees on those seeking to list in the alternative Investment Market Segment.