The Capital Markets Authority has hired a consultant to review the ten-year Capital Market Master Plan (CMMP, 2014-2023), which outlines the long-term strategic direction for the Kenyan capital markets. The Master plan was created in 2014 after extensive consultations with internal and external stakeholders.
In the six years since the creation of the master plan, remarkable progress has been achieved in the Kenyan Capital markets. Already, 54 percent of the Capital Market Master Plan deliverables have been achieved according to the CMA Chief Executive Officer, Wyckliffe Shamiah. One of the key milestones achieved is the creation of an enabling environment for the introduction of new investment products such as; derivatives, Commodities markets, exchange traded funds (EFT), Real Estate Investment Trusts (REITs), online Forex Trading, and Green bonds.
In addition, Kenya got admitted into the prestigious Global Financial Centre Index ranking of financial centres, acquired a new and efficient Central Depository System, and got dropped from the infamous Financial Action Task Force grey list, which lists countries with a high risk of money laundering and terrorism financing.
In the period under review, Kenya faced challenges such as the collapse of Imperial Bank, Chase Bank, and stock brokerage firms Discount Securities and Nyaga Stockbrokers. The events took away investors’ confidence and negatively impacted the Capital Markets.
CMA is reviewing the ten year master plan to align with the prevailing market conditions and expectations of stakeholders.
The markets regulator will conduct the master plan review with the support of FSD Africa. The Director for Capital Markets at FSD Africa, Dr. Evans Osano, said “Review of the Capital Market Master Plan is timely as it provides an excellent opportunity to re-align capital market development in Kenya to a post-Covid world where economic resilience is paramount”.
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