by Jackson Okoth

Plans are underway to align the operations of Kenya Association of Stockbrokers and Investment Banks (Kasib), Capital Markets Authority (CMA) and the Nairobi Stock Exchange (NSE).

This will be done through a strategic plan, to be unveiled by Kasib next month, which will define how the association works with other stakeholders, especially the CMA and NSE.

The strategic plan is also aimed at aligning the activities of the association with the Government’s Vision 2030 plan.

The strategic plan also incorporates the country’s plans to integrate with the rest of the East African community and the role the stockbrokers will play, especially with the expectation of increased cross listing of companies.

Moreover, there are some fundamental changes taking place in the industry that necessitate the re-evaluation of the role of stockbrokers and investment banks.

"Changes like the demutualisation of the NSE, which will allow the public to own part of the bourse, and therefore have a say on how it is run; the automated trading of bonds at the NSE, the first of which was the Kengen PIBO recently; and the introduction of

Over the Counter Trading, which will allow certain transactions to be conducted out of the exchange," said Jane Njeru, Kasib chief executive.

"The capital markets is very dynamic, and our strategic plan will assess the changes in the market, and how these effects have changes on the future of stockbrokers and investment banks,’ Njeru said, adding that the plan will be a continual planning process.

"It is our expectation that the plan will promote best practice in the operations of our members, and enable Kasib to rejuvenate capital markets," said Mr Michael Gichohi, Kasib chairman.

Njeru said the plan would be reviewed in tandem with market conditions.