SMEs urged to utilise theNSE’s flexible capitation
By Victor Mukabi, July 25, 2025The Capital Markets Authority (CMA) is leading the call for small and medium enterprises to leverage the Nairobi Securities Exchange (NSE) as a viable, sustainable, and cost-effective option for businesses expansion.
CMA CEO Wycliff Shamiah called for a shift in mindset in a move that can end the long-standing listing drought at the bourse, noting that the capital markets provide patient capital, with flexible terms that align with the growth trajectory of most Small and Medium Enterprises (SMEs).
“Those who are looking for funds, the opportunities are here,” Shamiah said at the NSE yesterday. “Capital markets financing is usually cheaper. It is patient, and for SMEs, that is what you need.”
This call is already resonating with a few trailblazers like Shri Krishna Overseas Limited (SKL), a packaging manufacturer, which has become one of the first to respond, listing 50.5 million shares on the NSE at an opening price of Sh5.90. Seventeen percent of the shares are now open to the public. For founder Sonvir Singh, the move to go public was not just about raising capital but also about institutionalizing the company for the future.
“While family-owned businesses have their strengths, listed companies operate in a more structured, compliant, and transparent manner, ensuring sustainability beyond the founders,” he said.
Singh believes the stock market offers an underexplored opportunity for local businesses to attract investment and gain credibility. Despite skepticism around stock market performance, he sees the present moment as ideal for strategic entry.
Growth of SMEs through NSE
“We all witness how financial institutions and banks are multiplying their profits. So why don’t we as businesses join with the public, multiply our profits, and share those profits with the public? That’s why we joined the NSE,” he added.
SKL’s listing is part of a larger growth strategy that includes a new state-of-the-art plant in Kisaju, Kajiado County, scheduled to open by year-end. The facility is expected to increase production capacity tenfold to 24,000 tonnes annually. Singh describes this as a turning point in the company’s journey, marking its transition from a local player to a regional industrial powerhouse.
The company’s decision to list falls under the SME Market Segment (formerly GEMS), a platform tailored for smaller businesses seeking access to capital without the regulatory rigors of a full IPO. Designed for firms that already meet basic shareholder requirements or have conducted private placements, the SME board offers a flexible, cost-effective pathway to the public markets—one that is better suited to the scale and pace of small business operations.
SKL’s move provides a compelling case study for other SMEs navigating a tough credit market.
In Kenya, SMEs can list on the Growth Enterprise Market Segment (GEMS) of the Nairobi Securities Exchange (NSE), which is designed for smaller, growing companies.
There are also various initiatives and platforms that support SME growth and access to capital, including crowdfunding platforms and dedicated funds.
As bank loans grow more expensive and often mismatched with business cycles, the stock market emerges not only as a source of funding but as a platform for visibility, governance, and shared prosperity.