if kenyans do not fancy stocks, open it up for foreigners. weirdly it may increase the popularity of stocks when unprecedented bulls occur.

@VVS. I cashed in on HFck at 50. the rally was too much, awaiting rights issue next yr

Kenya doesn't need hot money. Hot money is the kind of money that comes chasing for short term gains in the capital markets. It's not real investment money that's coming to finance new industries or put up infrastructure which is what the country needs. If hot money is given free reign at the NSE, the NSE is going to become a much more risky place. It's going to increase the volatility of the stock market as hot money tends to exaggerate both bulls and bears. And of course, there's a broader macro economic risk which affects the currency exchange rates a la the Asian financial crisis when hot money decides to liquidate en masse leading to mass sell offs of the KES which could see the value of the currency plummet leading to a surge in the cost of basic commodities leading to riots in the streets - see what happened in the Asian financial crisis. Either the CBK imposes foreign exchange controls or the CMA imposes a minimum holding period for the foreign investors. At this stage the brokers can only see the big fat commissions that will come from this activity and should not be relied on to provide impartial advice. If we have a repeat of the Asian financial crisis in Kenya, it will likely be attributed to this shortsighted rule.
On a different point, we are likely to see the likes of EABL and BAT become wholly owned foreign companies. Then they'll just register a company in Mauritius, stop paying 30% corporate tax given our mindless agreement with Mauritius - http://www.businessdaily.../-/q4nuo4z/-/index.html and just like that we will lose a lot of taxes that pay for public spending in Kenya.

sources tells me KCB will hit 60 next year