Nairobi Securities Exchange Offers Exchange-Traded Funds
The Capital Markets Authority said in an emailed statement that the Nairobi Securities Exchange would be offering exchange-traded funds. The Nairobi Securities Exchange was the third best performing stock exchange in Africa this year.
According to the statement by the Nairobi-based regulator, the exchange-traded funds were offered "in an effort to increase the scope of capital market products available in Kenya." It included assets such as stocks, bonds, or commodities and trades on a stock exchange market. There was no timeframe given yet. A consultant was still being sought to aid in the development of regulations with regards to the funds.
The funds would be good for individual investors who were looking for affordable ways to buy diverse assets. According to Paul Muthaura, acting chief executive officer of Capital Markets Authority, this individual investors are the targets of these Kenyan funds.
The Capital Markets Authority, an independent government-regulating agency, was responsible for the supervision, licensing and monitoring the Kenyan stock exchange.