This archive report was first published on 19 June 2020.
African Alliance Investment Bank has announced its decision to exit stockbrokerage, a move that could lead to job losses in the sector.
The company, which acquired the broker's licence through the takeover of Kenya Wide Securities in October 2002, cited a sharp decline in transactions as the reason for its decision.
According to the company, the structural decline in the agency trading model in both local and global financial markets has led to the decision to divest from and cease stockbroking activities.
As a result, African Alliance will cease to act as a stockbroker on the Nairobi Securities Exchange and as a central depository agent.
The company has advised its stockbrokerage clients to transfer their central depository system accounts (CDS account) to another stockbroker of their choice by July 22, 2020.
Failure to do so, the company will select another licensed broker to move the account to.
The Nairobi Securities Exchange (NSE) 20 share index has fallen to levels last seen in 2003, affecting stockbrokers who earn income based on share prices.
