KCB shares go on sale in Rwanda bourse

Published on 19/06/2009

By John Oyuke

Kenya Commercial Bank (KCB) commenced trading its shares on Rwanda Stock Exchange yesterday as it sought to make cross-listing part of its expansion strategy.

Cross-listing is when a firm lists its ordinary shares on one or more foreign stock market in addition to its domestic market.

Rwanda Minister for Finance and Economic Planning, James Musoni inaugurated the trading and commended the bank for pursuing the region’s economic integration process.

“KCB has, by this cross-listing, shown its confidence in our financial sector and the growth of our economy thus giving our people the opportunity to buy its shares,” said the minister.

He expressed confidence that the action by the bank would make other private sector companies in Rwanda list their shares on the stock exchange.

KCB Group Chairman, Peter Muthoka said the bank was excited to be the first private equity listed on the Rwanda market.

Chief Executive Martin Oduor-Otieno said the move was vital to the growth of Rwanda’s stock market, which has been dominated by bonds since inception 18 months ago.

“This is very important for us as we help open a new chapter for this country’s finance market,” he said.

Timing Ideal

He said the move would provide investment opportunities to thousands of Rwandese willing to invest in the stock market.

The action by KCB comes barely seven months after the bank began operations in that country. Muthoka described the timing as ideal.

“We hope investors share our vision of an East African business that is owned, managed and patronised by East Africans,” he added.

Muthoka told Rwanda investors that the Group reported profit before tax of about RWF 42.7 billion (Sh6.02 billion).

He said the good performance enabled the Board pay a dividend to shareholders of about RWF 7 (Sh1) for every ordinary share.

“We know that the value of the shares on any stock market reflects the actual value stakeholders attach to the business and we continue to put in place strategies to ensure we sustain our good performance going forward,” Muthoka said.

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