In a bid to enhance transparency and bolster investor confidence in the Kenyan capital markets, the Nairobi Securities Exchange (NSE) along with the Capital Markets Authority (CMA) has introduced a new directive for all listed companies. Effective immediately, these entities are required to develop and publicly share forward-looking calendars that detail all upcoming corporate events and their tentative dates.
The joint circular issued by the NSE and CMA specifies that the initiative aims to provide investors with a clearer view of forthcoming corporate actions. This strategic move is expected to enhance market predictability and stability by allowing investors to make more informed decisions regarding their investments.
Daniel Warutere, Director of Market Operations at the Capital Markets Authority, emphasized the importance of this initiative. “By ensuring that investors have access to comprehensive and timely information, we are not only safeguarding their interests but also enhancing the overall efficiency of our capital markets,” stated Warutere.
The forward-looking event calendars will cover a variety of corporate activities including but not limited to earnings announcements, dividend payments, and significant business developments or changes. Companies are required to submit their calendars for the remainder of this year by September 16th, 2024, and must also prepare the calendar for the year 2025 by January 10th, 2025.
Titus Killu, the Chief Officer of Regulatory Affairs at the Nairobi Securities Exchange, highlighted the flexibility of the directive. “We recognize that circumstances may necessitate changes to these dates,” Killu noted. “In such cases, companies are expected to promptly update the NSE and CMA with the revised information, ensuring that the market remains informed with the most current and up-to-date information.”
Additionally, companies are strongly encouraged to make these calendars available through their websites and other communication channels, further promoting transparency and accessibility.
This new requirement marks a significant step towards aligning Kenya’s financial market practices with global standards, where such disclosures are commonplace and crucial for the functioning of a transparent and efficient market. The move is widely supported by industry analysts, who believe that this will lead to a more informed investment community and potentially more stable market valuations.
Investors and market watchers are now keenly observing how listed companies will comply with this new requirement and the potential impacts it will have on market dynamics. As Kenya’s capital markets continue to evolve, such regulatory enhancements are seen as vital for fostering a robust investment environment.
