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The Capital Markets Authority (CMA) has issued licenses to 15 Kenyan businesses, enabling them to implement employee share ownership plans (ESOPs).
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Companies with Employee Stock Ownership Plans (ESOPs) establish trust funds to hold shares that are distributed to the employees, enabling them to be part of the company ownership structure.
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Fifteen Kenyan companies have been licensed to implement employee stock ownership plans, including major firms like Safaricom, Kenya Airways, and Equity Bank, among others.
The Capital Markets Authority (CMA) has granted licences for multiple companies to provide employee share ownership programs.
Ownership plans for employees are regarded as a crucial strategy for harmonizing the interests of staff with those of the organization, ultimately leading to a more driven and efficient workforce that delivers more than the basic.
What is an employee share ownership plan?
According to the Kenya Capital Registries, an employee stock ownership scheme, or ESOP, is a device that allows and facilitates employee ownership of a company.
It is an agreement between an employer and an employee whereby the employee is granted the rights to own a specified number of shares in the company, typically at a reduced cost and after meeting set requirements.
The ESOP involves a company establishing a trust fund that holds company shares, either acquired using cash or through borrowing. The company makes contributions to the trust, and these contributions are tax-deductible.
Employees are allocated shares, which can be sold back to the company at the current market price when they leave.
Employee ownership can be achieved in various ways, including direct purchases, bonuses, stock options, profit-sharing plans, or through worker cooperatives, where all members have equal voting rights.
4. Rift valley Railway – offers ESOPs to employees, with foremost choice of allocation mix.
Below is a list of 15 Kenyan companies that the Capital Markets Authority has licensed to offer Employee Stock Ownership Plans (ESOPs) in Kenya:
- Employee Stock Ownership Plan (ESOP) and Restricted Stock Unit Plan
- East Africa Breweries Limited Employee Share Ownership Plan
- Equity Employee Share Ownership Scheme
- Housing Finance Employee Share Ownership Plan
- International Maritime Employee Share Ownership Plan
- Employee Stock Option Program of Kenyan Commercial Bank.
- 3. To secure ownership of the company by Kenyan individuals and more employees.
- However, I can suggest that the phrase “Kenya Airways 2017 Group Employee Share Ownership Scheme” is a proper noun and does not require paraphrasing. It would still be the same in an International Edition of English language interpretation.
- * Employees will be required to contribute 4.5% of their monthly net salaries towards the plan, with a maximum limit of KES 3,400 per month.
- “This program aims to award ownership and equity to employees and their families for their long-term contributions to the company’s growth and success.”
- Employee Stock Option Plan for Automotive Industry Personnel
- Standard Group Limited Employee Share Ownership Plan (ESP) is a unique benefit for employees. The plan allows junior management and employees to acquire shares of the company. This plan aims to increase employee value and ownership, providing an incentive scheme that rewards long-term commitment and results in the achievement of specific goals. Under the plan, employees can purchase shares at reduce prices and hold them for a certain period before they start unblocking when certain conditions are met.
- Britam Holdings Plc Employee Share Ownership Plan
- Nairobi Securities Exchange PLC Employee Share Ownership Plan – Unit Trust
- NCBA Group PLC Employee Share Ownership Plan
