So the President stated yesterday thet there are plans to list more parastatals in the NSE. We all know apart from Safarciom, all others are nothing to write about.

Parastatals I would like to see:

1. KPA
2. KPC
3. Communications Authority
4. KENHA
5. KEPRA

Listing KPA and KPC at the same time will excite the market 100%

The lowest hanging fruit is reduce government stake in already listed firms or even better get out completely:

Safaricom
KCB
Kengen
Kenya Re
KPLC

Kenya Ports and Kenya Pipeline are cash machines. There would be a scramble to acquire them. If they structure it so that a strategic investor gets a controlling stake they can get really good prices for them.

KBC has lots of land in prime places. I wonder if the business itself is worth much, maybe it's archives😄

I doubt it would work out the same way in Kenya as it did in Russia. Russia was coming out of communism when state enterprises were privatized, not so in Kenya. Besides, during our IPOs, subscribers only get a certain allocation (assuming over-subscription). Anyone who wants to accumulate a sizeable chunk would have to do so in the secondary rather than the primary market.

Actually what happened in Russia is that the state assets were devided more or less equally amongst the citizens. Every one was given a kavoucher that was the equivalent of a share certificate. The problem was the citizens had never owned anything in their life because Russia had been under communism for about 70 years. Isitoshe things were collapsing and there was shortage of things like bread and people had to queue to get it. The oligarchs at that time were the managers of these enterprises that were being privatised. They just went round and bought those Tu pieces of paper which the citizens gladly sold to them for kidogo money to buy bread. They never understood they were selling companies, they had never owned anything in their lives.

The same thing happened with Mumias here in Kenya when it was privatised. There were shares allocated to farmers. They sold them very cheaply. If I recall something like 2 shillings before the share rallied to something like 40 something. Information asymmetry is rife in the market and that is what creates opportunities. It's just the way life is.

It is the mwanainchi's fault if they sell out of their allocations. I suspect many Kenyans bought Safaricom at IPO and sold out later when it went sub 5. We have a second opportunity to load up now that international investors are dumping, but how many Kenyans are taking advantage of this rare opportunity?

Majority Kenyans prefer to invest in land and sacco shares.

Several Kenyans also got burned with the shenanigans of brokers years past. Those folks will never return to the NSE. It will take a new generation with no hang ups about the NSE to revive interest in the bourse.

Meanwhile anyone with the balls of steel needed to buy and hold this market over a long period will eventually make out like a bandit. Valuations are ridiculously cheap.