Kenya's Capital Markets Authority approves listing of first ETF

Nairobi Securities Exchange to issue gold ETF

Kenya‘s market regulator, the Capital Markets Authority (CMA), has granted approval for the listing of the first Exchange Traded Fund (ETF) in Kenya. The ETF, which will track the price of gold, will be issued by NewGold Issuer (RF) Limited, which is incorporated in South Africa.

NewGold will issue and list 400,000 Gold Bullion Debentures as a secondary listing on the Nairobi Securities Exchange (NSE). The listing price of the ETF will be determined on the listing date based on the real-time cash market values of the gold price and the real-time price of the Kenya Shilling.

“This is a critical milestone in positioning Kenya as a gateway for regional and international capital flows by developing creative products that promote investor confidence in regional products. This is a step toward Kenya becoming a choice investment destination,” said CMA CEO Paul Muthaura.

The NewGold ETF had its primary listing on the Johannesburg Stock Exchange in 2004. The ETF has had secondary listings on other African exchanges, namely the Botswana Stock Exchange, the Stock Exchange of Mauritius, the Namibia Stock Exchange and the Ghana Stock Exchange.

The NewGold Gold Bullion Debentures issued after the Nairobi Securities Exchange listing will rank equally with each other and with all other Gold Bullion Debentures already issued on other exchanges.

Source: Capital Markets Authority (CMA)