The Capital Markets Authority (CMA) of Kenya has released a 2018-2023 strategic blue print that will start running from this month, guiding it for the next five years.
The strategy is expected to steer the development of the capital markets to support national development objectives and the achievement of MSCI emerging market status. CMA says the strategy will also position Kenya’s domestic capital markets as the premier choice for investors and issuers through robust regulation, supportive innovation and enhanced investor protection and experience.
The authority will work with the National Treasury to operationalize the independent auditor oversight legislation and with ICPAK to ensure that existing arrangements on sound financial reporting remain as effective as possible.
“The strategic plan comes at a critical time when the domestic financial market is primed to rebound and to experience greater activity and performance. The development of the new Plan was substantially informed by extensive consultations both internally and externally – locally and internationally, with the Authority’s Board playing a key role.” James Ndegwa, Chairman of CMA noted.
With the rapidly rising growth and impact of disruptive technology within the global financial markets space, CMA aims to leverage global best practices in aligning its internal infrastructure to support market efficiency, as well as its support of FinTech through its regulatory sandbox.
Adding that strong coordination will be needed with other regulators to ensure there are no gaps or overlaps, as well as to make sure that scalable solutions touching on multiple sectors are able to be put in place where necessary.
The regulator will enhance awareness and delivery of Capital Market education for investors and issuers. This will include the recent launch of the university challenge, one-on- one business incubator and accelerator meetings, market intermediary-driven awareness programmes, one stop shop stakeholder engagements, social media engagements, diaspora on boarding initiatives, edutainment initiatives, as well as the use of awareness ambassadors.
The plans also highlights support of the operationalization of an efficient pre-trading environment including trade facilitation, access to data and information and stable technology.Ensure efficiency and risk minimization in the trading and post-trading environment (clearing, custody & settlement).
“The Authority will deploy its resources to ensure that the performance targets set out herein will be met through realigning our organizational structure, ensuring effective communication between key stakeholders as well as continuously improving monitoring and evaluation mechanisms to support successful execution of this Plan.” Paul Muthaura, CEO of the regulator noted.
