The Nairobi Securities Exchange (NSE) this morning officially launched its 2015 NSE Investment Challenge at the Exchange building on 55 Westlands Road.
The NSE Investment Challenge is the Exchange’s flagship financial literacy initiative which was launched in April 2008 targeting to inculcate an investment culture among the youth in universities and other tertiary institutions of higher learning.
Speaking during the launch Mr. Geoffrey Odundo, the Chief Executive Nairobi Securities Exchange, said: “The Exchange is committed to educating and informing the public on the Capital Markets as this in turn contributes to sustainable economic growth. The investment challenge gives the youth a safe, entertaining and affordable means of learning how to invest in our capital markets.”
“This initiative is aimed at ensuring that we have a future generation that is financial savvy and can make informed choices on their finances, encourage entrepreneurship and innovation all with the goal of driving the economic development and prosperity of this country,” said NIC Bank Group Managing Director Mr. John Gachora who was the chief guest.
The Exchange is slated to launch various products such as; Derivatives, Real Estate Investment Trusts (REITS) and Exchange Traded Funds (ETFs), this year. These products will be incorporated on the Investment Challenge electronic platform exposing the participants to them. The NSE is also looking to partner with other African Stock Exchanges such as the Johannesburg Stock Exchange (JSE), to profile the companies listed on their Exchange and provide the winners of the Challenge with an opportunity to go for study tours to other bourses.
This year the winners stand a chance to walk away with cash prizes worth Kshs.600,000, contributed by the official sponsor NIC Securities. The winners will receive internship opportunities at the NSE and NIC Securities.
The Exchange is currently carrying out countrywide registration in universities and other tertiary institutions; so far 5,263 students have registered for the competition which begins in May 2015.
Investment Challenge Description
This is an annual online competition which is a simulation of the activities that happen around trading in securities (Bonds & Stocks) listed on the Nairobi Securities Exchange (NSE). Each participant gets Kshs. 3 Million virtual start-up capital to trade with using live data from NSE for a 3 months period. They are mentored and judged by selected brokers and investment advisors and they get to win exciting prices which range from cash to buy Stocks/Shares of listed companies and listed Bonds.
Objectives of the NSE Investment Challenge
- To connect to the youth market educationally and build their character of saving and investing.
- To enhance financial management and entrepreneurial skills amongst the youth.
- To encourage a culture of thrift or saving amongst the youth.
- To teach the risks and gains involved while trading in stocks and bonds.
- To assist in investing savings in productive enterprises e.g. through the Nairobi Securities Exchange.
- To demystify trading of Stocks & Treasury Bonds at the Nairobi Securities Exchange amongst the youth.
2014 NSE Investment Challenge Milestones
- Reached 189 accredited, tertiary institutions across Kenya.
- Educated 11596 youth through investor forums.
- Registered 7,309 participants in the 2014 Challenge.
2015 NSE Investment Challenge Cash Prizes
- Overall winner Kshs. 300,000
- First Runner up Kshs. 200,000
- Second Runner Up Kshs. 150,000
