President Uhuru Kenyatta urges SMEs to tap into bourse funds

By Kazungu Chai

President Uhuru Kenyatta has challenged Kenyan Small and Medium Enterprises (SMEs) to raise funds from the capital market and benefit from cheap working capital offered at the bourse.

President Kenyatta reckons that by listing on the stock market, the SMEs can benefit from the bullish bourse to fund their expansion.

He said increased SMEs activity at the bourse would also consolidate Kenya’s position as a regional financial hub.

“We are committed to involving the SMEs in our quest to strengthen Nairobi’s capacity to meet the East and Central Africa region’s demand for financial services,” the President said after a visit to the Shenzhen Stock Exchange, China.

The President, who is today concluding his first State visit to the globe’s second largest economy, this week saw Kenya and China sign eight crucial agreements on economic partnerships. President Kenyatta noted the impressive progress made by the Shenzhen bourse, saying the same could be replicated in Nairobi.

 He said his government was creating a friendly environment for SMEs to thrive, and the sector was important in growing the economy.

He said legislation and licensing regime governing the SMEs was being reviewed to make it a one-stop shop that would attract more investment.

“SMEs are the backbone of innovation and are crucial to provision of homegrown solutions to some of the economic challenges facing our country,” he said.

He urged the youth to take advantage of the thriving Information Technology industry in Kenya to start, expand and list SMEs on the Nairobi Securities Exchange (NSE).

This, the President said, would go a long way in creating employment.

He also observed that the impressive growth of SHZ was driven by unity of purpose, focus, discipline and hard work. He asked Kenyans to embrace the same values in order to succeed in their socio-economic aspirations.

SHZ Chairman Chen Dongzheng said the second largest bourse in China and 9th in Asia, lists more than 1,500 firms.

Mr Chen said the Chinese Government is heavily involved in the stock exchange’s operations to ensure its stability. President Kenyatta and First Lady Margaret Kenyatta also toured the Shenzhen Museum, taking in the 30-year transformation of the city from a small border outpost to a modern metropolis. He said the museum was a fitting legacy to the people of Shenzhen.