The Nairobi Securities Exchange, which is currently selling shares to the public, is concerned that new entrants could affect it.
In the Initial Public Offering prospectus, the NSE says it is a possibility that the Capital Markets Authority may in future approve more securities exchanges in Kenya, opening the market to competition.
"The NSE is the only approved securities exchange in Kenya but this could change and affect (it)," it states.
"The NSE is aware of such a possibility so it has continued to build the brand and put in place a dynamic strategy to ensure continued competitiveness."
The bourse also derives most of its revenues from operations in Kenya hence attracting a single country exposure. It intends to venture into other East and Central African markets to diversify its incomes to mitigate possible decline in Kenya revenues.
"NSE is exploring initiatives to diversify its revenues including operating exchanges in other neighbouring countries," it states.
It also says future taxes on listed securities if introduced would have an impact on it.
The NSE IPO opened on Thursday and closes on August 12. A piece is priced at Sh9.50 with the minimum purchase set at 500 shares. Results of the IPO and refunds, if any, will be known on September 4. Self-listing and commencement of trading will follow on September 9.
A total of 66 million shares, equivalent of a 31.06 per cent stake of which 2.5 million shares are reserved for NSE employees, are on sale to raise Sh627 million. Net gains will be invested in new products, install systems and clear an outstanding mortgage.