Nairobi — The Cooperative Bank's initial public offering kicks off today. This issue will be important for a number of reasons.

One, it comes at a time when the institution has grown to be one of the most profitable banks in Kenya, 10 years after being pushed to the precipice by the 1998 terrorist bombing, and poor management in previous years.

But more significantly, the Sh6.7 billion IPO comes hot-on-the-heels of the historic Safaricom issue, followed by a slump at the Nairobi Stock Exchange, and general global financial meltdown which has affected many similar exchanges in Europe and Asia.

More specific to the local market, it comes at a time when the NSE's reputation has been tainted by the collapse of brokers Francis Thuo & Partners, Nyaga Stockbrokers, and more recently, trouble at Discount Securities.

Those who run the Capital Markets Authority know very well that after mollycoddling market players for too long, now it has no choice but to crack the whip.

In the current context, that should mean issuing a direct and unequivocal warning to brokers that speculating with clients' funds without authority will be dealt with severely.

Furthermore, the CMA must dictate a timetable within which refunds, if any, must be made to clients. Any broker who fails to submit payment for shares has to be made to face the music.

Although the IPO comes at a time when the market is down, it presents a godsend for reviving the integrity of the bourse.