Stock Market: Give chance to young investors

The recent off loading of the 30 % of KenGen shares by the government will go down as one of the most successful IPOs in the country.
The IPO has also set a precedent in the Kenyan money market where a government has shown its commitment to give part of the ownership in parastatals to the Kenyan public.
The IPO has shown people an alternative place to invest their money away from the traditional banks and in the building and construction industry.
The move has also opened doors to corporate bodies where they can source additional funds for expansion through right issue, bonds and IPOs at a very low cost compared to bank loans which have exorbitant interest rate on repayment. (Click here for a glimpse of the borrowing rate charged by various banks in the country)
But the most significant feature in the IPO was the presence of the young Kenyans seeking to buy part of KenGen’s equity.
The new Nairobi Stock Exchange Chairman Jimnah Mbaru who replaced Da Gama Rose is calling on the government to off load 20% of its shares in Safaricom, Kenya’s largest mobile phone company.
Mr. Mbaru hopes that, by off loading the 20% shareholding to the public in a company worth over Sh100 billion, the government will be able to wipe the over Sh12 billion likely to be returned to unsuccessful applicant in the KenGen IPO due to over subscription.
20% of Safaricom according to Mbaru will represent about Sh20 billion which the governmnet is likely to get from the Safaricom IPO compared to the Vodafone offer of 11% of Safaricom share at a cost of $100 million.
With the KenGen offer, it was evident that even the young people have the knack for investing and should be given a chance to be part of shareholders in the Nairobi Stock Exchange.
With few young people owning shares in blue chips companies like Barclays, Kenya Airways and East Africa Breweries it’s time the government gave them a chance by off loading some of its shareholding in a number of state owned companies.
The young investor can hardly afford to invest elsewhere apart from the stock market. Investing in unit trust will require him a to have a minimum of between Sh250,000 and Sh500,000 which is a pipe dream to many.
The Kenyan banks have become a total rip off, charging unnecessary fees and offering low interest rate for his savings.
Its time the government gave the young Kenyan this chance. The government has the intention of giving away part of its ownership in National Bank and Consolidated Bank among other fully owned companies and this should be done through the stock market for the benefit of the young investor.

Bank withdrawal rate at the Counter

BANKS CAH WITHDRAWALS
WITHDRAWAL OVER THE COUNTER
BANK		FEE(KSH)
STANCHART		500
BARCLAYS		300
STANBIC		150
CO-OP		100
KCB		100
NBK		100
TRANSNATIONAL		50
EQUITY		50
AKIBA BANK		NIL
ABC		NIL		source:money magazine

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BANKS ATM WITHDRAWAL RATES

BANK WITHDRAWAL RATE
ATM WITHDRAWAL
BANK		FEE(KSH)
BARCLAYS		30
CBA		30
EQUITY		30
INDUSTRIAL DEVELOPMNET		30
I&M		30
STANBIC		30
CO-OP		25
TRANSNATIONAL		25
STANCHART		25
KCB		20
NBK		20	Source: Money Magazine

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