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CMA clarifies that Genghis Capital Limited is not under statutory management but directs the firm to conclude discussions on the unmet contractual obligations

Nairobi 11 March 2025… The Capital Markets Authority (CMA) would like to clarify that Genghis Capital Limited has not been placed under statutory management.

CMA notes that Genghis Capital Limited unmet contractual obligations to a third party remain outstanding and has consequently directed the firm to expedite resolution.

The operations of the Genghis Unit Trust Scheme are regulated under the Capital Markets (Collective Investment Schemes) Regulations 2023, which require that client assets are held by a custodian in segregated accounts from those of the firm. 

 

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CMA Suspends Trade Sense Ltd License for 90 days

Nairobi, 04 March 2025…The Capital Markets Authority (CMA) has announced the suspension of the Money Manager licence issued to Trade Sense Limited for a period of ninety days for failure to comply with various regulatory requirements. The suspension is effective 03 March 2025.

The enforcement action underpins CMA’s mandate to protect investors and ensure the proper conduct of all licensed entities and capital markets institutions to maintain order and integrity in the capital markets.

‘’The suspension is due to the failure by Trade Sense Limited to comply with various regulatory requirements which undermines the duty to protect investors and foster market confidence ’’, said the CMA Chief Executive Officer, Mr. Wyckliffe Shamiah.

CMA has been engaging the management of Trade Sense Limited since 2023 to address various regulatory breaches that had been identified. The regulatory breaches include non-compliance with governance, financial, Anti-Money Laundering and operational requirements.  

According to Section 13 B (4) of the Capital Markets Act “the Authority may, where satisfied that the capital markets or an investor shall suffer irreparable damage as a result of an activity under subsection (1), impose an interim measure for not more than three months to prevent further damage pending completion of an inquiry”.

During the 90-day suspension period, CMA will conduct a review to determine whether to lift the suspension or take further regulatory or enforcement action as may be necessary.

A money manager is an entity licensed by CMA to engage in the business of managing the online foreign exchange portfolio of an individual or institutional investor in return for a fee based on a percentage of assets under management. However, a money manager is prohibited from receiving clients’ funds but only granted trading rights access to the funds deposited by the client directly to the client’s online trading account through the online foreign exchange broker.

 

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BACKGROUND INFORMATION

The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair, and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. CMA also regulates the commodity markets and online forex trading. The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest. For more information, please contact: Antony Mwangi, Manager Corporate Affairs & International Relations on amwangi@cma.or.ke

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CMA Approves Ziidi Shariah Money Market Fund

Nairobi, 20 February 2025 – The Capital Markets Authority (CMA) has granted approval to Gulfcap Investment Bank to register the Ziidi Shariah Money Market Fund. The fund is a Shariah-compliant investment product designed to cater to the growing demand for Islamic finance in Kenya.

The Ziidi Shariah Money Market Fund will operate as a standalone fund with its own distinct incorporation documents and promoter. The fund will target registered M-PESA customers who either profess the Islamic faith or prefer to invest in Shariah-compliant financial products.

This initiative aligns with the CMA’s efforts to promote inclusive and diverse investment opportunities within Kenya’s capital markets.

With this approval, the number of licensed firms offering Shariah-compliant unit trust funds in Kenya now stands at seven, reflecting the increasing interest and growth potential of Islamic finance in the country.

The CMA Chief Executive Officer, Mr. Wyckliffe Shamiah, while commenting on the approval, said, “This marks a significant milestone in the ongoing efforts to promote Islamic finance within Kenya’s capital markets. We believe Islamic finance holds immense potential which can be unlocked through creating an enabling environment for such opportunities to thrive”.

 

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CMA Licenses New Fund Manager

Nairobi, 20 February 2025 – The Capital Markets Authority (CMA) has licensed Tradiam Investments Services Limited as a fund manager, increasing the total number of licensed fund managers in Kenya to forty three.

The CMA Chief Executive Officer, Mr. Wyckliffe Shamiah, observed that there has been substantial growth in the assets under management as collective investments schemes reaching over Ksh316 billion. This has driven the significant interest in fund management license category.”

Tradiam Investments Services will target both institutional and retail clients. For institutional clients, the target includes pension schemes, insurance companies, and corporates seeking portfolio management services, while the retail investors under consideration are individuals looking for investment opportunities through collective investment schemes

 

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BACKGROUND INFORMATION ON THE CAPITAL MARKETS AUTHORITY

 

The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair, and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. CMA also regulates the commodity markets and online forex trading. The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest. For more information, please contact: Antony Mwangi, Manager Corporate Affairs & International Relations on amwangi@cma.or.ke

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CMA engaging Genghis Capital Ltd on the unmet contractual obligations

Nairobi 22 January 2025… In line with its investor protection mandate, the Capital Markets Authority (CMA) is engaging Genghis Capital Limited to get a roadmap on how the firm intends to address the outstanding debt owed to its stakeholder.

CMA would like to clarify that clients’ assets are held in segregated accounts separate from the funds of Genghis Capital Limited.

The operations of the Genghis Unit Trust Scheme are regulated under the Capital Markets (Collective Investment Schemes) Regulations 2023, which require clear separation of the roles of the fund manager from those of the custodian and trustee.

Client assets managed under the Genghis Money Market Fund and Mali Money Market Fund are held by a duly authorized custodian and oversighted by an independent trustee.

 

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BACKGROUND INFORMATION

The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair, and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. CMA also regulates the commodity markets and online forex trading. The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics;

Promoting investor education and public awareness; and Protecting investors’ interest. For more information, please contact: Antony Mwangi, Manager Corporate Affairs & International Relations on amwangi@cma.or.ke

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CMA Issues the Seventh Edition of the State of Corporate Governance Report

Nairobi, 06 January 2025…The Capital Markets Authority (CMA) has issued the Seventh Edition of the Report on the State of Corporate Governance for Issuers of Securities to the Public in Kenya. The report is for the financial year 1 July 2023 to 30 June 2024.

The annual publication outlines CMA’s independent assessment of companies listed on the Nairobi Securities Exchange (NSE) and the issuers of corporate bonds are applying the principles and recommendations contained in the Code of Corporate Governance Practices for Issuers of Securities to the Public, 2015 (CG Code).

The CMA Chief Executive Officer, Mr. Wyckliffe Shamiah, observed; “This comprehensive assessment serves as a crucial roadmap for issuers, showcasing areas of excellence while identifying opportunities for improvement. Our ultimate goal is to strengthen corporate governance and sustainability practices, fostering long-term growth, transparency and enhanced stakeholder confidence in the capital markets sector.”

The Authority assessed fifty-two Issuers, and the performance was as follows: 27 assessed issuers securing a Leadership Rating, 13 issuers achieving a Good Rating, 8 Issuers demonstrating a Fair Rating and 4 Iissuers within the Needs Improvement category. The assessment was based on corporate governance principles under the Capital Markets (Public Offers, Listings and Disclosures) Regulations 2023 (POLD Regulations 2023) and the Code of Corporate Governance Practices for Issuers of Securities to the Public 2015 (the CG Code). 

One of the outstanding achievements is the significant improvement in the annual weighted overall governance score of issuers (listed companies). From a Fair Rating of 55% in the financial year 2017/2018, issuers have advanced to an impressive Good Rating of 73.56% in 2023/2024. This remarkable improvement underscores the collective effort by issuers to refine & implement their governance frameworks, elevating corporate transparency, accountability, investor confidence and market integrity.

However, the annual weighted overall score for all issuers showed a decrease in performance, declining by 2.15% from 75.71% (Leadership rating) in the 2022/2023 financial year to 73.56% (Good rating) in the 2023/2024 financial year. The decline was attributed to failure by issuers to adhere to the principles of the CG Code following the enactment of POLD Regulations 2023 which has made the application of the CG Code mandatory.

There is also a move from disclosure-based assessment by the Authority to implementation-based approach where issuers are expected to document specific initiatives on how they were implementing the provisions of the CG Code.

Despite the decline in the annual weighted overall score by Issuers, the following three principles improved in comparison to the FY 2022/2023: Commitment to good corporate governance improved from 78.60% (Leadership Rating) to 81.31% (Leadership Rating), Ethics and Social Responsibility principle improved from 74.82% (Good Rating) to 74.94% (Good Rating) whereas Accountability, Risk Management and Internal Control improved from 80.7% (Leadership Rating) to 80.72% (Leadership Rating).

 

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BACKGROUND INFORMATION

The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair, and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. CMA also regulates the commodity markets and online forex trading. The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest. For more information, please contact: Antony Mwangi, Manager Corporate Affairs & International Relations on amwangi@cma.or.ke

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CMA Licenses New Fund Manager and Admits One Firm to the Regulatory Sandbox

Nairobi, 02 January 2025 – The Capital Markets Authority (CMA) has unveiled two groundbreaking initiatives, reinforcing its commitment to advancing Kenya’s capital markets.

CMA has licensed Kenyan Alliance Asset Management Limited as a fund manager, increasing the total number of licensed fund managers in Kenya to forty two. With its entry into the market, Kenyan Alliance Asset Management will look to provide wealth and portfolio management services tailored to both individual and corporate clients, in full compliance with the Capital Markets Regulations.

Yeshara Tokens Limited has also been admitted to the regulatory sandbox for a one-year trial. Through its blockchain-powered Yeshara Platform, the company will test the trading of tokenized securities, focusing initially on real estate. This innovation is set to unlock liquidity and broaden access to financial markets.

CMA Chief Executive Officer Wyckliffe Shamiah highlighted the significance of these developments said; “The tokenization of real estate holds significant potential to expand access to international financial markets for both local and global investors.”

The regulatory sandbox provides a secure and controlled environment for testing innovative financial solutions, aligning with CMA’s mission to foster market integrity, investor confidence, and market development.

 

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BACKGROUND INFORMATION ON THE CAPITAL MARKETS AUTHORITY

The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants;

Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest. For more information, please contact: Antony Mwangi, Manager Corporate Affairs and International Relations on amwangi@cma.or.ke

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Update on the acquisition of Bamburi Cement PLC shares

Nairobi, 04 December 2024 – The Capital Markets Authority (CMA) would like to notify the shareholders of Bamburi Cement Plc and the investing public that Savannah Clinker Limited has withdrawn its competing offer for acquisition of the Bamburi Cement Plc shares today (04 December 2024). CMA has also approved the withdrawal of the offer in line with the Capital Markets (Takeover and Mergers) Regulations, 2002.

Following this development, shareholders of Bamburi Cement Plc who had accepted the offer by Savannah Clinker Limited have until 5.00pm on Thursday, 5 December 2024 to reconsider their decision. Shareholders who do not change their decision will be deemed to have declined the offer by Amsons Industries (K) Limited and remain shareholders of Bamburi Cement Plc.

Consequently, the only valid offer is the one from Amsons Industries (K) Limited as already approved by the Authority without any changes.

Shareholders who had accepted either of the offers are free to withdraw their acceptance before closure of the offer period at 5.00 pm on Thursday, 5 December 2024. Trading of Bamburi Cement Plc shares will be suspended from 9.00 am on 06 December 2024 to facilitate reconciliation.

 

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BACKGROUND INFORMATION

The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair, and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. CMA also regulates the commodity markets and online forex trading. The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes;

Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest. For more information, please contact: Antony Mwangi, Manager Corporate Affairs & International Relations on amwangi@cma.or.ke

cma

CMA Approves Ziidi Money Market Fund From Safaricom PLC

Nairobi, 27 November 2024 – The    Capital Markets Authority (CMA) has granted approval to Safaricom PLC to establish the Ziidi Money Market Fund, as a Collective Investment Scheme (CIS), marking another innovative step. The fund will be accessible through the M-PESA platform, making it convenient for subscribers to grow wealth through the capital markets.

Safaricom has partnered with three fund managers; Standard Investment Bank, ALA Capital Limited, and Sanlam Investments East Africa Limited to offer the Ziidi Money Market Fund.

The CMA Chief Executive Officer, Mr. Wyckliffe Shamiah, said the milestone underscores the commitment to foster innovation which also enables Safaricom enhance its footprint in the finance services sector.

Ziidi Money Market Fund is expected to empower unit holders by offering accessible and diversified investment options as part of the broader National Government’s financial inclusion strategy.

 

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BACKGROUND INFORMATION

The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair, and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. CMA also regulates the commodity markets and online forex trading. The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes;

Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest. For more information, please contact: Antony Mwangi, Manager Corporate Affairs & International Relations on amwangi@cma.or.ke

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CMA Grants Approval of Firms in Various License Categories

Nairobi, 26 November 2024 – In an effort to deepen and promote development of the capital markets, the Capital Markets Authority (CMA) has granted approval to several firms across various license categories.

AKN Investments Limited has been granted approval as an Authorized Securities Dealer license from its prior Investment Advisor license, enabling it to expand its services to institutional investors.

Moran Capital Management Limited has been licensed as an Investment Adviser to focus on private equity, stock trading, and unit trusts, among other areas.

Entrust Advisory Limited was granted an Investment Adviser License, specializing in equities trading, fixed income, and business expansion advisory.

Future Construkt Investment Managers Limited has been approved as a REIT Manager to leverage its expertise in real estate advisory and development.

Givva Wealthtech Limited was licensed as an Intermediary Service Platform Provider, with a mission to foster financial inclusion through secure technological platforms offering licensed investment products.

CPF Financial Services, through its subsidiary CPF Capital and Advisory Limited has been licensed both as a REIT Manager and Investment Adviser. The REIT Manager license will enhance CPF’s presence in the real estate sector, building on its portfolio restructuring and feasibility services. As an Investment Adviser, CPF will guide clients in managing risks and achieving growth through innovative financial solutions.

Octagon Pension Services Limited has been granted approval to operate as Octagon Unit Trust Scheme, which comprises five sub-funds; Octagon Money Market Fund; Octagon Balanced Fund; Octagon Fixed Income Fund; Octagon Equity Fund; and Octagon USD Dollar Money Market Fund.

Trademax Global Markets (KE) Pty Ltd has been granted a non-dealing online foreign exchange broker license. The firm is part of the TMGM Group, which also has operations through regulated businesses in Australia, New Zealand, and Mauritius.

The Authority granted a Money Manager License to Store Poa Enterprise Limited, who are seeking to leverage their expertise in technology to provide comprehensive online trading solutions for individuals and businesses.

The CMA Chief Executive Officer, Mr. Wyckliffe Shamiah, observed, “These licenses are key to aligning the capital markets with the national Government agenda of enhancing the savings to GDP ratio by offering Kenyans a broader range of investment opportunities in the capital markets.”

 

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BACKGROUND INFORMATION ON THE CAPITAL MARKETS AUTHORITY

The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair, and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. CMA also regulates the commodity markets and online forex trading. The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest. For more information, please contact: Antony Mwangi, Manager Corporate Affairs & International Relations on amwangi@cma.or.ke

 

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