[2008-10-08]  Capital Markets in Plan to Cut Brokerage Fees
The Government will lower fees charged by stockbrokers to make trading in shares cheaper, according to market regulator Capital Markets Authority.

Fees charged when dealing in shares in Kenya are said to be very high, sometimes reaching four per cent while in some countries they can be as low as one per cent.

Capital Markets Authority chief executive Stella Kilonzo said the regulator intends to review the fees structure for brokers adding that Western markets were moving towards charging no fees due to the evolution of Internet trading.

"We have a study going on looking at the fees to ensure that Kenyans get value for their money," said Ms Kilonzo.

She was speaking during an Insurance Institute of Kenya luncheon at the Laico Regency Hotel in Nairobi.

Meanwhile, before the Capital Markets Authority takes action, she advised Kenyans to carefully shop around for the cheapest broker.

Mrs Kilonzo asked insurance companies to invest in shares through use of fund managers and collective investment schemes.

The perceived risks of the equities market, she said should not stop insurance companies from investing in equity.

The insurance industry boasts of an aggregate premium value of Sh47.4 billion with an asset base of about Sh128 billion.

"These figures show the great potential that the insurance industry has in investing in capital markets instruments," Mrs Kilonzo said.
Source: Copyright © 2008 The Nation.