President William Ruto on Wednesday, March 22, launched a pension underwriting portfolio that allows ordinary Kenyans to invest as low as Ksh500.
The Head of State rang the first bell for Local Authorities Pensions Trust which is currently open to everyone at the Nairobi Securities Exchange (NSE).
"The presence of a deep market like ours has been vital in mobilising resources, especially necessary capital for such investments.
"I am looking forward to days in the near future when we shall be reporting that Mondays and Thursdays are the days that registered the most trade at the Nairobi Securities Exchange" Ruto noted.
Previously, the Laptrust was an underwriting scheme for employees of the defunct Local Governments.
In a statement by chairman of the Capital Markets Authority (CMA) Ugas Mohamed, Real Estate Investment Trusts (REITs) provides investors with a special opportunity to invest in the real estate market, including those who might not have the resources or knowledge to buy actual properties.
"This is an ideal investment vehicle for Mama Mboga and the Boda Boda community as the threshold is as low as Ksh500. As a capital markets industry, we have an opportunity to also contribute to the national agenda by facilitating investments in affordable housing projects,” Ugas stated.
The CMA chairman explained that the government was strategically supporting the private sector to invest in real estate.
“The upscaling of Real Estate Investment Trusts (REITs) as a capital markets product is quite timely as the product can unlock the potential of the real estate industry.
"REITs offer investors a unique opportunity to invest in the real estate market, including those who may not have the capital or expertise to invest in physical properties," Ugas explained.
On his part, NSE Chairperson, Kiprono Kittony, noted that the listing of LAPTRUST Imara I-REIT opened new opportunities to Kenyans who did not have a lot of knowledge in the securities exchange market.
“The listing of LAPTRUST Imara I-REIT is a testament to the growing issuer confidence in our markets and the attractiveness of Kenyan real estate sector as an investment destination,” Kittony noted.
In addition, President Ruto acknowledged the efforts that members of the Nairobi Security Exchange had made in ensuring that Kenya’s economic market remains robust, competitive, and energetic.
How to Buy The Laptrust Shares
1. Fundamental Analysis
Traders are advised to consider profiling the shares by making an analysis of different factors that may influence the future price of stocks.
NSE advises traders to review graphs, the company's management, financial statements, and the position in the industry and market.
2. Buy The Shares
It's important to note that traders can buy the shares directly at NSE.
A trader who doesn't have a lot of knowledge in the securities market can also seek the assistance of a stockbroker that will facilitate investment.
3. Open a Trading Account
A trader will have to open Central Depository System (CDS) account, which is unique to each investor, and it can either be opened by an individual or on a joint basis.
A CDS account is like a bank account, but it only handles stocks in order to ensure that all settlements are paid out in time.
A trader will need the following documents when opening a CDS account:
i) Two colour passport-sized photos
ii) KRA pin
iii) National ID or Passport
iv) Proof of residence
v) Proof of income in the form of a payslip or a bank statement
"Before you deposit capital into your trading account, it is important to first use a demo account with your broker. This is a paper trading account that allows you to trade in NSE using virtual funds.
"The demo account allows you to gain valuable insight into how the stock market works and how real-time prices move and change. Once you have gained enough experience, you can deposit real money into your trading account," Securities Market Expert Nigel Frith explained.
