Business Type: Cross-border listing is an activity (not a standalone license) that requires CMA approval for Kenyan companies seeking to list their securities on foreign stock exchanges or for foreign companies seeking to list their securities on Kenyan exchanges (e.g., the Nairobi Securities Exchange).
Licensing Requirements: Kenyan companies seeking foreign listings must provide evidence of primary listing on the NSE (or justification for foreign-only listing), compliance with foreign exchange regulations and Central Bank of Kenya requirements, detailed prospectus or offering documents, evidence of compliance with the foreign exchange’s listing requirements, legal opinions on compliance with Kenyan and foreign laws, and prescribed fees. Foreign companies seeking listing on the NSE must provide evidence of primary listing on a recognized foreign exchange, prospectus or offering documents adapted to Kenyan requirements, evidence of compliance with NSE listing rules, legal opinions on compliance with home jurisdiction and Kenyan laws, and prescribed fees.
Government Fees: Approval fees are approximately KES 150,000 to KES 300,000, depending on the complexity of the listing and the jurisdictions involved. Additional fees may apply for ongoing reporting and compliance.
Timeline: The approval process typically takes 60 to 90 days, subject to the completeness of documentation, cooperation from foreign regulators, and compliance with cross-border regulatory requirements.
Limitations: Cross-border listings must comply with both Kenyan and foreign regulatory requirements, maintain primary listings (where required), provide disclosures in accordance with both jurisdictions, adhere to corporate governance standards of both jurisdictions, and obtain necessary foreign exchange approvals from the Central Bank of Kenya.
Penalties: Violations may result in suspension or de-listing from the NSE, fines, public censure, restrictions on capital repatriation, and prosecution for non-disclosure or fraudulent activities.
Enforcement: The CMA collaborates with foreign regulators to monitor cross-border listings, reviews ongoing disclosures and compliance, ensures adherence to both jurisdictions’ requirements, and protects Kenyan investors through enforcement of disclosure and governance standards.