What is Cross Listing of Stocks?

Cross Listing

Cross-listing is the listing of a company's common shares on a different exchange than its primary and original stock exchange. In case you have noticed there are two stocks at the NSE that don't look like Kenyan stocks. These stocks include; 

1. Umeme Limited

2. BK Group (Bank of Kigali) 

Umeme Limited is the KPLC of Uganda and the leading and sole distributor of electricity in Uganda while BK Group is the biggest bank in Rwanda. 

There are immense benefits for cross listing and this include; 

1. Access to Capital

Companies list on stock markets to access capital and cross listing provides that opportunity to public companies to access more capital. 

2. Enhance a Company's Image

Cross listing bolsters a company's brand. If the company makes a good announcement, the announcement is likely to be carried by international media outlets. In addition, a company with an international brand tends to be seen as a major player in an industry. 

3. Help in Improving a Company's Structure of Corporate Governance

Cross-listings often require companies to establish a clear and well-defined set of rules that govern its corporate structure. This means that it must be open regarding its operations. 

4. Attract more and better Talent

Every company needs talent or front liners in order to perform well in the stock market and in serving its customers. With a cross border listing, the company gains exposure, increasing its chances of attracting top talent. 

Kenya has also cross listed the following companies to East Africa Exchanges. 

List of Cross-Listed Kenyan Companies
Company Name	Cross-Listing Countries
KCB Group	Uganda	Tanzania	Rwanda
Nation Media Group	Uganda	Tanzania	Rwanda
Uchumi	Uganda	Tanzania	Rwanda
EABL	Uganda	Tanzania
Jubilee Holdings	Uganda	Tanzania
Equity Bank	Uganda		Rwanda
Centum Investments	Uganda
Kenya Airways		Tanzania

Apparently, We have about 8 companies listed across East African Securities exchange. 

Shockingly, Burundi and South Sudan do not have a stock exchange while Rwanda still uses the Over the Counter (OTC) system of trading like shown in the picture below.