Jamaica stock market has become a case study!
Jamaica Live News Desk– Aug 3, 2025
Jamaica’s stock market is turning heads—and not just within the Caribbean. Faida Investment Bank Founder and Chairman Bob Karina, a leading figure in Kenya’s financial sector, has called for his country to study the Jamaican Stock Exchange (JSE) as a potential blueprint for growth.
Karina, who recently visited Jamaica, made pointed comparisons between the JSE and the Nairobi Securities Exchange (NSE), highlighting the stark difference in performance and scale between the two markets. “Jamaica has a population of under three million but boasts over 120 listed companies—92% of them local,” Karina noted. “Kenya, with 55 million people, only has about 65 companies listed.”
That contrast, according to Karina, is both sobering and inspiring. At the heart of Jamaica’s success is its Junior Market, a segment that has proven to be a powerful engine for growth among small and medium-sized enterprises (SMEs). Karina emphasized one key incentive: companies listed on the Junior Market enjoy a five-year corporate tax holiday—a major draw for entrepreneurs looking to access capital.
“Kenya can learn a lot from Jamaica,” Karina said. “Especially how to create policies that unlock funding for SMEs and drive inclusive economic growth.”
🇯🇲 Why Jamaica’s Stock Market is Gaining Global Attention
There is growing recognition that Jamaica’s capital market is punching well above its weight. In fact, the Jamaica Stock Exchange (JSE) has been celebrated globally as one of the top-performing exchanges in recent years. In 2018, Bloomberg ranked the JSE the best-performing stock market in the world, recording a 29% surge in USD terms. That performance continued into 2019, with returns exceeding 34%.
This success story is not going unnoticed. The Jamaica Gleaner has reported that the JSE and NSE have signed a Memorandum of Understanding (MOU) to formalize cooperation and knowledge-sharing—an early sign of deeper cross-continental collaboration.
🔍 What Kenya—and Others—Might Learn from Jamaica
Here are some of the standout features of the JSE model:
- Junior Market Incentives: Corporate tax exemption for five years, followed by a 50% reduction for another five—specifically designed to attract SME listings.
- Local Ownership: Over 90% of listed companies are Jamaican, demonstrating strong domestic participation and investor confidence.
- No Capital Gains Tax: A significant benefit for investors, coupled with a flat 15% dividend withholding tax.
- Digital Access: The launch of an online trading platform in 2015 made it easier for retail and international investors to buy and sell shares.
- Economic Reforms: Under IMF guidance, Jamaica has improved fiscal discipline, simplified the tax regime, and boosted private sector lending—setting a stable foundation for investor growth.
⚠️ Not Without Challenges
Despite the fanfare, experts urge caution. While the market has boomed, Jamaica’s broader economy remains constrained, averaging less than 1% GDP growth annually prior to 2018. Market volatility is another concern, given the relatively small size of listed companies and total market capitalization.
Other red flags include:
- Currency Depreciation: Gains in Jamaican dollars often shrink when measured in U.S. dollars.
- Social Concerns: High crime rates and lingering corruption remain barriers to long-term confidence and stability.
- Market Size: The JSE’s overall scale is modest compared to global exchanges, and large investor movements can significantly sway the market.
📈 A Case Study Worth Watching
Nonetheless, the Jamaican Stock Exchange stands out as a compelling case of how smart policies, regulatory innovation, and economic reform can turn a small market into a global leader. Its success provides tangible lessons for emerging economies, especially those like Kenya with untapped SME potential and a growing appetite for investment-led development.
Bob Karina’s visit and endorsement signal that Jamaica’s financial story is gaining international traction—and may soon inspire other nations to take a closer look at the Caribbean’s economic gem.
Jamaica Live will continue to monitor developments as this partnership between the JSE and NSE unfolds. Could we be witnessing the rise of a new South-South financial alliance? Only time will tell.
📊 Did You Know?
- 120+ companies listed on the JSE
- 92% are local firms
- 0% capital gains tax in Jamaica
- 5 years of tax holidays for Junior Market listings
- 300%+ market growth from 2014 to 2019
- #1 performing stock exchange globally in 2018