CMA and bourse to set up unit to police struggling companies

The trading floor at the Nairobi Securities Exchange. Investor confidence in the equities market is waning. [File, Standard]

The Capital Markets Authority (CMA) and the Nairobi Securities Exchange (NSE) have announced plans to set up a unit to monitor the performance of troubled firms.

The establishment of the Recovery Board is meant to protect investors in the event the firms go bankrupt. This comes even as the Nairobi bourse continues to record the worst performance in almost a decade, with almost a dozen listed firms announcing profit warnings in the past financial year.