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If you want your company to be listed in the NSE, below are the requirements:
There are three investment market Segments at the Nairobi Securities Exchange namely:
- Main Investment Market Segment (MIMS);
- Alternative Investment Market Segment (AIMS); and
- Fixed Income Securities Market Segment (FISMS).
To list securities on any of these boards, the following eligibility criteria must be satisfied:
| Requirement | Main Investment Market Segment (MIMS) | Alternative Investment Market Segment (AIMS) | Fixed Income Market Segment (FISMS) |
| Incorporation status | The issuer must be a public company limited by shares and registered under the Companies Act (Cap 486) | The issuer must be a public company limited by shares and registered under the Companies Act (Cap 486) | The issuer must be a public company limited by shares and registered under the Companies Act (Cap 486) or any other corporate body. |
| Share Capital | The minimum authorized, issued and fully paid up capital must be Kshs. 50 Million. | The minimum authorized, issued and fully paid capital should be Kshs.20 Million | The minimum authorized, issued and fully paid up capital must be Kshs. 50 Million |
| Net Assets | The net assets should not be less than Kshs. 100 Million immediately before the public offer. | Net assets immediately before the public offer should not be less than Kshs.20 Million | The net assets should not be less than Kshs. 100 Million immediately before the offer. |
| Transferability of shares | The shares to be listed shall be freely transferable. | The shares to be listed shall be freely transferable. | May or may not be transferable. |
| Financial records. | The audited financial statements of the issuer for five preceding years be availed. | The audited financial statements of the issuer for three preceding years be availed. | The audited financial statements of the issuer for three preceding years be availed (except for the government) |
| Directors and Management | The directors of the issuer must be competent persons without any legal encumbrances. | The directors of the issuer must be competent persons without any legal encumbrances. | The directors of the issuer must be competent persons without any legal encumbrances |
| Track record | The issuer must have declared positive profits after tax attributable to shareholders in at least three years within five years prior to application. | The issuer must have been operating on the same line of business for at least two years one of which it must have made profit with good growth potential. | Not a requirement. |
| Solvency | The issuer should be solvent and have adequate working capital. | The issuer should be solvent and have adequate working capital. | Not a requirement |
| Share ownership structure | At least 25% of the shares must be held by not less than 1000 shareholders excluding employees of the issuer. | At least 20% of the shares must be held by not less than 100 shareholders excluding employees of the issuer or family members of the controlling shareholders. | Not a requirement |
| Certificate of comfort | May be required from the primary regulator of the issuer if there is one. | May be required from the primary regulator of the issuer if there is one. | May be required from the primary regulator of the issuer if there is one. |
| Dividend policy | The issuer must have a clear future dividend policy | The issuer must have a clear future dividend policy | Not a requirement |
| Debt ratios | Not a requirement | Not a requirement | Major ratios: Total indebtedness including the new issue not to exceed 400% of the company’s net worth as at the latest balance sheet. The funds from operations to total debt for the three trading periods preceding the issue to be kept at a weighted average of at least 40%. A range of other ratios to be certified by the issuer’s external auditors. |
| Issue lots | Not a requirement | Not a requirement | Minimum issue lot size shall be: Kshs. 100,000 for corporate bonds or preference shares Kshs. 1,000,000 for commercial paper programme. |
| Renewal date | Not a requirement | Not a requirement | Every issuer of commercial paper to apply for renewal at least three months before the expiry of the approved period of twelve months from the date of approval. |
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