Ministry of Industry, Investment and Trade Permanent Secretary Ali Ismail told a cooperative forum in Nairobi that his ministry is currently conducting talks with the Nairobi Securities Exchange (NSE) to establish the trading platform.

“We are at an advanced stage to see if a customized module can operate within the wider securities exchange platform,” Ismail said.

Kenya currently has 19,600 registered cooperatives societies that have approximately 14 million members.

Ismail said companies that float their shares in the NSE are registered under the Companies Act while cooperatives are registered under the Cooperatives Act.

“Due to this difference, the cooperative society shares might require a customized platform for trading of their shares,” he said.

He added that the trading platform will help to unlock the potential that exists in the cooperative sector.

“The platform will make shares at the cooperative sector more liquid and so members will be able to cash their shares more easily,” he said, adding that the important role that cooperatives play in the economy needs to be recognized.

According to the ministry, cooperatives are one of the biggest mobilizers of domestic savings in Kenya.

“The government will enable cooperatives to become more vibrant due to their role in promoting financial inclusion,” Ismail said. Enditem

Source: Xinhua


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