* Aims to list 100 more firms in five years
* Small- and mid-cap segment to be more active than big board
* Bond turnover Jan-July triples to $4.2 bln vs all of 2009
By Helen Nyambura
NAIROBI, Aug 17 (Reuters) - Kenya's Nairobi Stock Exchange (NSE) plans a segment for small- and mid-capital companies within the next year and targets admitting 100 new firms to the bourse by 2015, an exchange executive said on Tuesday.
The NSE is counting on small- and mid-cap firms -- those with no more than 1 billion shillings ($12.4 million) in annual revenue -- to fuel trading amid hopes a new Kenyan constitution will provide stable conditions in east Africa's largest economy.
The bourse at present has 55 listed companies. At the close of trade on Monday, total market capitalisation stood at 1,156.12 billion shillings, up from 1,146.61 billion on Friday.
Peter Mwangi, NSE's chief executive, told reporters the bourse saw strong potential from small- and mid-cap companies. "We expect that segment will be more active than the main segment," he said.
"We would like to have it up and running sooner, but 12 months is realistic," he said, adding the bourse expected to add 100 more companies in the next five years.
Companies will be able to issue both debt and equity.
There has been growing interest in investing in stocks and treasury and corporate bonds on the NSE. Recent initial public offerings and bond issues have been oversubscribed.
Mwangi said bond turnover on the exchange for the first seven months of 2010 was 338 billion shillings, compared with 110.6 billion shillings for all of 2009, largely due to the automation of bond trade last year.
He forecast a nine-year government infrastructure bond that went on sale this month seeking to raise 31.6 billion shillings would be oversubscribed because its coupon is not taxed.
Mwangi said most foreign participation on the NSE was from European and South African investors.
Kenya's benchmark 20-share index rallied after voters endorsed the new constitution this month, peaking at 4,674.31 points. It closed on Monday at 4,524.80.
The new law is expected to give a lift to business activity, and in turn, activity on the bourse.
"Things are looking up. Part of the setbacks were to do with the political environment. Now we have the supporting structures right," Mwangi said. (Writing by George Obulutsa, Editing by Richard Lough and Michael Shields)