A proactive regulator of a competitive and robust capital market.
To promote the development of Kenya’s capital market to be an investment destination of choice through facilitative regulation and innovation.
The Capital Markets Authority (the Authority) has the dual mandate of regulating and facilitating the development of the capital markets in Kenya. The Authority is inspired and driven by the goal of positioning, through responsive and innovative regulation, Kenya’s capital markets as an attractive destination for domestic, regional and international issuers and investors to invest in and realize their investments in Kenya, as well as within East Africa, across Middle Africa and the African continent as a whole.
At the core of this aspiration lies the Capital Markets Master Plan, a 10-year blueprint for the development of the capital markets in Kenya, which aims to position Kenya as the heart of African capital markets. The Master Plan is currently under accelerated implementation under key underpinning pillars namely: supporting developmental and economic transformation; deepening the product and services range and strengthening the infrastructure of the markets; continuously improving the legal and regulatory environment; and improving Kenya’s connectivity to global markets and its competitiveness as a financial center.
In line with our commitment to broadening the range of products and services available to issuers, investors and market intermediaries, the Authority has facilitated the introduction of products such as Real Estate Investment Trusts (REITs), Asset Backed Securities (ABS), and Exchange Traded Products (ETPs) such as Exchange Traded Funds (ETFs) and Derivatives which are expected to be rolled out by the end December 2015. This has been complemented by the recent lifting of restrictions on foreign investment in listed securities; the introduction of a listing segment targeting SMEs; the approval of a trading platform for derivative instruments; the introduction of a global standard corporate governance code for listed companies and stewardship code for institutional investors; and the design and introduction of industry certification standards in conjunction with the Chartered Institute for Securities and Investment (CISI).
In pursuit of establishing a harmonized single market for securities in the East African Community, the Authority has been at the forefront of developing East African Community Council Directives to define region-wide legal and regulatory convergence standards for the capital markets, as well as spearheading initiatives to support the integration of market infrastructure to facilitate the free movement of capital and services within the EAC.
With Kenya’s growing visibility as the global leader in mobile money solutions and innovation, the Authority is facilitating the roll out of “M-Akiba”, a mobile phone-based platform through which investors will register, purchase, trade and settle government bonds from as low as US$30 targeted to support financial market inclusion and higher national savings levels.
Full implementation of the identified activities in the Master Plan is targeted to position Kenya’s market to be deep and dynamic so as to stimulate domestic development and provide a gateway for international capital flows in line with Kenya’s Vision 2030.
The products available in the capital markets in Kenya are equities and debt securities, Real Estate Investment Trusts, Asset-Backed Securities, Exchange Traded Products such as Exchange Traded Funds and Collective Investment Schemes. We have launched a derivatives market and the first product we expect to see there is financial derivatives.
Kenya’s capital city of Nairobi.
The Authority is proud to be an active player in the development of global standards on securities regulation as a Board Member of the International Organization of Securities Commissions (IOSCO). The Authority is also engaged in informing regional responses to support systemic stability as one of the securities markets members of the Financial Stability Board (FSB) Regional Consultative Group for sub-Saharan Africa.
Company Goals & Objectives
The principle objectives of the Authority are:
1. To establish a robust, facilitative policy, legal and regulatory framework for capital market development;
2. To develop and deepen the capital market products and services;
3. To promote investor education, awareness and interest in the capital markets;
4. To enhance the efficiency and integrity of the capital market infrastructure and institutional arrangements; and
5. To strengthen the institutional capacity of the CMA to effectively and efficiently deliver on its mandate.
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