In an effort to Strengthens ties between the UK and Kenyan economies, the London Stock Exchange Group (LSEG) on Friday 26 May signed a Memorandum of Understanding (MoU) with the Kenyan Ministry of Energy and Petroleum. This is the first agreement signed between LSEG and the Government of Kenya.
The agreement, signed by Charles Keter, Cabinet Secretary for Energy and Petroleum, and Nikhil Rathi, CEO, London Stock Exchange plc outlines both organisations’ commitment to raising capital for Kenya’s energy industry, through public market equity and debt listings. The MoU also lays out both parties’ plans to assemble key stakeholders to establish an effective dual-listing framework for equity listings in London and Nairobi. The signing follows an event in Nairobi on 11 May 2017 to celebrate the launch of London Stock Exchange Group’s inaugural ‘Companies to Inspire Africa’ report, and further strengthens business ties between the UK and Kenya.
Nikhil Rathi, CEO, London Stock Exchange plc: “The Kenyan energy industry holds enormous potential for growth, and we are honoured to sign this agreement today with the Kenyan government. Part of London Stock Exchange Group’s mission is to boost access to growth capital for companies from across the world. With 106 African companies listed on our markets, we are uniquely placed to be working in partnership with the Kenyan government towards this aim.”
Charles Keter, Cabinet Secretary for the Kenyan Ministry of Energy and Petroleum: “With our growing energy demand and the significant progress that we continue to make in our petroleum exploration efforts, we recognize that as a country, we need to develop world class energy infrastructure. “Our partnership with London Stock Exchange Group is driven by our realization that energy infrastructure projects are very capital intensive and mobilization of capital is critical to providing clean, sustainable, affordable, competitive and secure energy required for Kenya to improve its industrial performance. “We believe that this partnership will be able to help us mobilize the capital required to accelerate the pace of energy infrastructure development in Kenya which will in turn drive our country to achieve its full industrial potential. As we continue to invest in our energy infrastructure, we urge companies to come and partner with us by investing in Kenya.”
London Stock Exchange Group has a long history of supporting the development of African capital markets and investment in African companies.
- In April 2017, LSEG and the Nigerian Stock Exchange renewed their capital markets agreement, originally signed in 2014 to support African companies seeking dual listings in London and Lagos
- Seplat was the first Nigerian company to simultaneously dual list equity shares in London and Nigeria
- In March 2017, LSEG launched its inaugural ‘Companies to Inspire Africa’ report, a landmark publication identifying hundreds of the fastest-growing and most dynamic private businesses across Africa
- 50 Kenyan companies were included in the Companies To Inspire Africa report, with 14 of the Kenyan companies operating in renewable energy
- In March 2016, LSEG established an Africa Advisory Group, bringing together 12 distinguished business leaders, policymakers and investors from across Africa, to discuss the challenges and opportunities presented by the development of the continent’s capital markets
- In June 2014, LSEG signed a strategic agreement with Casablanca Stock Exchange to share its expertise on the full exchange business chain, from listing to trading, and from clearing to settlement and custody with a commitment to position Casablanca’s capital markets and financial infrastructure as a regional hub
- There are currently 10 African sovereign bonds listed in London, from Egypt, Gabon, Ghana, Namibia, Nigeria and Zambia
- There are 106 African companies listed or trading on London Stock Exchange – more than on any other international stock exchange
- There are two Kenyan companies listed on London Stock Exchange: Kakuzi and Base Resources
- LSEG market infrastructure technology is deployed in more 12 African markets, including Nairobi Securities Exchange, Botswana Stock Exchange, Casablanca Stock Exchange and Johannesburg Stock Exchange