Kaspi.kz Faces Challenges from Corruption and Business Environment in Kazakhstan

Kaspi.kz JSC Sponsored ADR RegS (KSPI) has disclosed a new risk, in the Litigation & Legal Liabilities category.

Kaspi.kz JSC Sponsored ADR RegS faces significant risks due to the prevalence of corruption and weaknesses in the business environment in Kazakhstan, as highlighted by the country’s ranking of 88th out of 180 in Transparency International’s 2024 Corruption Perceptions Index. With a score of 40, Kazakhstan’s business climate is further hindered by inadequate investor protection, costly business establishment processes, and challenges in tax systems, insolvency resolution, and contract enforcement. These factors could deter foreign investment, impacting the economy and potentially Kaspi.kz’s operations. Similar risks are present in other markets like Türkiye, emphasizing the need for robust anti-corruption measures despite the company’s existing controls.

Overall, Wall Street has a Moderate Buy consensus rating on KSPI stock based on 2 Buys.

To learn more about Kaspi.kz JSC Sponsored ADR RegS’ risk factors, click here.