Palipo na Moshi pana Moto!Those arent my words but a poplar quote from my gandpa .In the last few months kenya has witnessed one of the highest number of rights issues in history and as if that aint enough all of them have recorded remarkable OVERsubscription rate.So the big question comes what does this mean to the future of financial markets and of investors.Great wise men and women of Wazua what say you?

My say, most of the rights issues are moves in the right direction for the shareholders, CMA and the economy at large.

Huuh! Nothing peculiar here, banks have been doing rights issues to shore up their capital ratio's, with the new capital adequacy guidelines from the CBK effective 1 January 2013 expect more rights issues, its either that or no or little dividends from some banks as they build their capital ratio's via retained earnings.

Mopping up excess liquidity via equity purchases wouldn't work in the banking sector considering their work in credit creation and they have actually been on the forefront of the rights issue