January 16, 2018 / 7:32 AM / a year ago

Kenya allows short-selling of shares to boost liquidity

NAIROBI, Jan 16 (Reuters) - Kenya has changed its market regulations to allow short-selling of shares by participants to boost liquidity on the bourse, market officials said on Tuesday.

Pension funds hold the bulk of shares and the lack of securities lending, borrowing and short-selling framework has curbed activity as the funds typically don’t trade their holdings frequently.

“Making the Kenyan capital markets highly vibrant and liquid is a key priority for the capital markets industry and the Securities Lending, Borrowing and Short-Selling Regulations are expected to facilitate this,” said Paul Muthaura, chief executive of regulator CMA.

The Nairobi Securities Exchange is a key entry point for foreign investors looking for exposure to the region’s fast-growing economies.

Reporting by Duncan Miriri; editing by Jason Neely

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