Kenyans can now invest in gold bars and coins on the Nairobi Securities Exchange (NSE).
This is after the markets regulator allowed South Africa’s NewGold Issuer (RF) Limited to list its secondary assets at the bourse.
“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 Chief Executive Paul Muthaura.
The Capital Markets Authority (CMA) has approved Kenya’s first Exchange Traded Funds (ETF) contract, allowing NewGold Issuer to list 400,000 Gold Bullion Debentures as a secondary listing on the NSE’s main investment market segment.
An ETF is a type of fund which owns the underlying assets (in this case physical unwrought gold in the form of London Good Delivery Bars) and divides ownership of those assets into shares. The market security is then traded like a common stock on a stock exchange and experiences price changes throughout the day as they are bought and sold.
The listing price of Kenya’s 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 shilling.
