Nairobi Securities Exchange (NSE) Plc has waived NSE transaction levy (0.12 percent) on all equity day trades for the next 30 days effective July 6, 2022 to shore up activities and boost liquidity on the struggling exchange.
This comes after the exchange launched day trading on equities in November of 2021 and reduced transaction fees by five (5) percent for equity investors which adopt the same day trading model.
As a result the NSE levy of 0.12 percent reduced to 0.114 percent of the value of the transaction after applicable rebate of five (5) percent while Capital Markets Authority (CMA) and Central Depository and Settlement Corporation (CDSC) levies of 0.12 percent and 0.08 percent respectively remained unchanged.
On Wednesday, the bourse managers resolved to temporarily abolish the entire NSE levy of 0.12 percent for 30 days to boost activities on the exchange that has seen massive exit of foreign investors since the beginning of this year.
Foreign investors are fleeing frontier and emerging markets in search of safer markets following a rise in interest rate in the US and news about Sri Lanka’s default on its debt obligations for the first time in its history.
The situation has been exacerbated by the events in the Kenyan environment including uncertainty over the August general election, a weakening currency, dollar shortage, rising cost of living and the general apathy by retail investors against the stockmarket.
“The market is currently trading at a historic discount presenting a unique opportunity for investors to invest in securities of companies with strong fundamentals,” NSE’s Chief Executive Geoffrey Odundo said.
The NSE is weighed down by investor apathy, lack of new listings and unscrupulous dealers preying on unsuspecting investors through insider trading.