The Kenya Association of Stockbrokers and Investment Banks (KASIB) was the first to oppose the amendment to the Companies Act, saying a 50 per cent threshold is too low to accord the majority shareholders the right to acquire the shares of minority shareholders. "Most jurisdictions globally have set the threshold at 90 per cent - and with good reason. Chairperson Willy Njoroge said the law makes it increasingly easy for majority shareholders in listed companies to acquire the shares of the minority shareholders for purposes of delisting. The Nairobi Securities Exchange (NSE) termed the law a blow to its effort to enhance sound corporate management in companies through listings at the bourse. The move is expected to go a long way in positioning Kenya as a conducive, facilitative and competitive business environment.

Source: The Star January 17, 2020 12:56 UTC