Kenya's NSE appoints new boss - CNBC Africa

Kenya's NSE appoints new boss

East Africa

by Elayne Wangalwa 0

The Nairobi Securities Exchange (NSE) has appointed Geoffrey Otieno Odundo as the new chief executive officer.

After a detailed and rigorous process the bourse's board of directors appointed Odundo to take over from Peter Mwangi who completed his six-year tenure in November last year.

“Mr. Odundo’s leadership skills, experience and wealth of knowledge would be instrumental in driving the NSE’s aggressive Strategic Plan aimed at developing the Kenyan Capital Markets and growing the NSE into be a leading Securities Exchange in Africa,” the NSE said in a statement.

Odundo an accomplished banker has been the managing director and CEO of Kingdom Securities Limited, a subsidiary of Co-operative Bank - the third largest bank in Kenya by asset size - for the last five years. He is known to be the driving force behind the growth of the firm to become one of the leading Trading Participants of the NSE.

Speaking on his appointment Odundo said, “I am very honoured and privileged to be appointed as the next Chief Executive of the leading Securities Exchange in East and Central Africa, and I am very confident that the future of the NSE as a key driver of Kenya’s economy is very bright as we deepen the current products and diversify into new product offerings.”

According to Steve Biko, director at Hidalgo Group, Odundo’s appointment comes at a very interesting time and he faces a lot of challenges.

(READ MORE: Nairobi bourse hits record high on its IPO)

“Geoffrey [Odundo] has experience because we have seen he has been able to steer Kingdom Securities to one of the most stable stockbrokerages. However, the challenges that we are facing right now in the market are very dynamic. He will need a lot of support and steer with the stockholders the government, chairman of the joined investment group,” Biko said.

“The capital gains tax is something that will actually to dampen the investor confidence in the market because 5 per cent of every transaction is actually going to be a huge demoralisation point. Also CMA proposed 10 year reform plans in the market, so for him he is coming in when there is a lot of mess to clean up.”

As it is, the re-introduction of the capital gains tax has already stirred an uproar in the country’s property market. The charge has also slowed down trading at the bourse.

(READ MORE: Kenya’s capital gains tax stirs uproar)

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