KCB gets green light to cross-list in Rwanda

Published on 12/06/2009

By John Oyuke

Rwanda has given Kenya Commercial Bank (KCB) permission to cross-list its shares on its Over-The-Counter market.

The approval makes KCB the first company to have its stock dealt in the country’s emerging capital market, where only government bonds are traded and also the first company to list on the four stock exchanges within East Africa.

Rwanda’s Capital Markets Advisory Council (CMAC) executive director Robert Mathu confirmed approval by the Council.

“The board has approved the cross-listing of 2.2 billion ordinary KCB shares of par value Sh1 each on the Rwanda Over the Counter Market,” he said.

He said the regulating body had put in place sufficient infrastructure and the requisite listing and trading rules to facilitate the process.

He expressed optimism that the bank’s listing would pave the way for Rwanda companies to participate in the security market as well as enhance public awareness about financial products.

The bank’s Group Chief Executive Martin Oduor-Otieno announced the bank would make its shares available at the Rwanda Over-the-Counter market in the next few days. The trading on that market, he added, would encourage Rwandese to have a sense of ownership of the bank.

“KCB becomes the first listed securities in the Rwanda capital market which is great for us. It will also give us the visibility that we and our customers need,” he said in a statement.

Investment opportunity

Oduor-Otieno said the objective of the move is to make KCB a business that is owned, managed and supported by East Africans.

He said the move was vital to the growth of Rwanda’s stock market, which has only bonds listed on it and for the development of the financial sector.

“Listing KCB shares in Rwanda will help in the development of the capital market in that country and at the same time provide an investment opportunity to the thousands of Rwandese willing to invest in the stock market,” he said.

Oduor-Otieno said the cross listing would make it convenient for them to invest in the company without coming to Kenya or going to Uganda or Tanzania security markets.

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