Nairobi — Kenya capital markets' players on Thursday asked Tanzania to open up its markets. They made the request to Tanzania's Prime minister, Mizengo Peter Pinda, during his visit to the Nairobi Stock Exchange.

The premier, who is on a three-day official tour in the country, visited the NSE as a sign of Tanzania's commitment towards integration of the capital markets in the East Africa Community.

Signals from Tanzanian authorities on capital markets integration have been mixed, especially on opening up its capital markets to the other EAC citizens.

"We would like to see what we in Kenya have done extended by Tanzania," NSE chief executive, Peter Mwangi, told the Tanzania delegation.

In 2007, Kenya amended its legislation to recognise all EAC citizens as local investors in as far as investing in the Kenya capital markets is concerned.

By that edict, EAC citizens access privileges only previous enjoyed by Kenyans, such as paying taxes at a reduced rate of five per cent, unlike foreign investors who pay an enhanced rate of 15 per cent.

Reserved

They also participate in the 40 per cent share allocation normally reserved for local investors during IPOs. The new law was first applied last year during the Safaricom IPO, which saw the Tanzania government ban its citizens from participating.

Tanzania has also closed off access by the rest of EAC member countries to its market. "We look forward to greater cross-border investment with some of the listed Tanzania companies getting cross-listed on the NSE," Capital Market Authority chief executive, Ms Stella Kilonzo said.

But as the premier noted, fear rather than market dictates, has been the driving factor. "It is fear. We were frightened that by doing so (allowing access) we would be handing over our wealth to foreigners," Mr Pinda responded.

He hinted that the Tanzania market may soon open up to the rest of the economies, although giving no specific dates. "We are soon reaching a stage where we can say, a Kenyan is not a foreigner."

Addressing the same forum, Kenya deputy Prime minister and minister for Finance, Uhuru Kenyatta, noted that the structures for integration are already in place.