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CMA Approves Two New Funds to Expand Investment Opportunities for Sophisticated Investors

Nairobi, 14 November 2024 – The Capital Markets Authority (CMA) is pleased to announce the approval of two significant funds, enhancing investment opportunities for sophisticated investors.

Faida Investment Bank Limited has received approval to establish the Oak Multi-Asset Special USD Fund under the Faida Umbrella Fund. This USD-denominated fund targets high-yield assets such as global sovereign bonds, corporate bonds, and derivatives, offering medium to high-risk investment options and a T+2 settlement period after a six-month lock-in.

Additionally, Dry Associates Limited (DAL) has converted its Balanced Fund into the DAL High Yield Special Fund, now focused on high-yield returns through Kenyan and East African government securities and corporate fixed-income investments. Targeting moderate to aggressive investors, the fund provides structured asset allocation across short- and long-term fixed-income securities.

These approvals reflect CMA’s commitment to fostering innovative products that meet evolving investor needs while ensuring compliance and transparency 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

cma

CMA Approves New Collective Investment Schemes from various Asset Management Firms

Nairobi, 14 November 2024 – The Capital Markets Authority has approved four new funds by licensed asset management firms. These funds will be offered to investors with diversified investments across different asset classes and geographical regions.

Britam Asset Managers Limited has been authorized to introduce the Britam USD Money Market Fund, under the Britam Unit Trust Scheme. The Fund is targeted at the investor seeking stable, low-risk returns denominated in USD. It will invest its assets primarily in short-term money market instruments, including Government securities and highly rated commercial papers, with the objective of preserving capital and realizing consistent income.

Also, Orient Asset Managers Limited has been approved to offer the Orient Dollar Money Market Fund under the Orient Umbrella Fund. It is designed to accommodate low entry levels and semi-annual income distribution for investors who seek reasonable stability in capital together with reasonable income.

The Authority has also approved the new CIC Global Special Fund offered by CIC Asset Management Limited, which forms part of the CIC Unit Trust Scheme. The Fund shall target investors falling within the medium- to high-risk category who seek a balanced approach as far as capital growth is concerned, with regular income actively managed through interest rate and credit risk.

Finally, permission was granted to VCG Asset Management Limited to introduce the VCG Offshore Opportunities Special Fund with eight specialized sub-funds that aim at offshore equities, commodities, technology, and multi-asset investments. These sub-funds are aimed at high net worth and institutional investors who are keen to diversify their investments across global markets with key sectoral themes.

These approvals highlight the commitment of CMA to the continued development and stability of the Kenyan financial market through assurance of access to a variety of investment products. The new funds among others would afford a wider exposure for investors to the global and regional markets towards the undertaking of the capital market in Kenya.

 

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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

Request for proposals

Request For Proposals For Amendment Of The Capital Markets(Corporate Governance) (Market Intermediaries) Regulations, 2011

The Capital Markets Authority is charged with the mandate of regulating and developing Kenya’s capital markets. In line with the Statutory Instruments Act, the Capital Markets Masterplan and the Strategic Plan, the Authority seeks to ensure that the legal and regulatory framework is up to date and responsive to changing market dynamics, technological advancements and emerging stakeholder needs.

As part of our ongoing commitment to ensuring that the regulatory framework remains robust, transparent, and aligned with global best practices, we are initiating a review of the Capital Markets (Corporate Governance) (Market Intermediaries) Regulations 2011.

In line with this, we invite submission of proposals for amendments or improvements to these regulations to support the development of a comprehensive and effective regulatory framework.

Proposals are expected to be detailed and supported by relevant data or case studies where applicable. This will help the Authority understand the practical implications of any suggested amendments and how they might benefit the market.

Kindly submit your comments by 31 October 2024 via email; comments@cma.or.ke, addressed to the Chief Executive Officer, Capital Markets Authority

Nairobi cityscape - capital city of Kenya

FiRe Awards Promoters Push for Enhanced Accountability, Transparency in Resource Use

Nairobi, 27 August 2024… The promoters of the Financial Reporting (FiRe) Award have today launched the FiRe Award 2024 edition in a move aimed at pushing for integrated financial reporting across the private and public sectors in the country, thus enhancing accountability and transparency in resource management.

This year’s Award’s theme is “championing for effective sustainability reporting through technology and innovation to enhance transparency,” which underscores the growing importance of business sustainability disclosures as a reporting mandate for private companies and public sector entities.

The FiRe Award is organised by the Institute of Certified Public Accountants of Kenya (ICPAK), the Public Sector Accounting Standards Board (PSASB), the Nairobi Securities Exchange (NSE), Capital Markets Authority (CMA), and the Retirement Benefits Authority (RBA). 

During the Award ceremony that takes place usually in December, private and public sector entities are expected to provide comprehensive information on their environmental, social, and governance (ESG) practices, reflecting their commitment to sustainable development, as part of their disclosure of non-financial information.

 

Speaking during the launch of the 23rd edition of the FiRe Award, the Chairperson of the Award Executive Committee, who is also the ICPAK CEO, CPA Dr. Grace Kamau, pointed out the critical role that sustainability reporting plays in advancing sustainable development goals and promoting corporate responsibility.

She said that by adopting International Financial Reporting Standards (IFRS), especially IFRS S1 and S2, ICPAK aims to provide guidance and frameworks that allow enterprises to effectively monitor, manage, and disclose their sustainability impacts and climate risks and opportunities.

“Soon, we will release a communique to guide the market on the envisioned phases of adoption, assurance of sustainability reports, and disclosure of sustainability information while continuing to create awareness through curated workshops and roundtable events to ensure a just transition.”, said Dr. Kamau.

The NSE Chief Executive, Mr. Frank Mwiti, noted that NSE has placed special focus in supporting and enabling companies in Kenya to report on sustainability to better manage risks and attract more investments in particular companies.

“We strongly believe that private companies will be better placed to address growing stakeholder demands for transparency on how businesses manage their impacts to the environment, economy and people.”

The PSASB Acting CEO, Ms. Georgina Muchai, encouraged the public sector entities to increase the uptake of ESG reporting noting that “ESG is a growing concern for government regulators, investors, and standards bodies. With ESG, public sector entities now have a great opportunity to prepare for new regulations around sustainability reporting and commit to transparency and accountability. This means setting out to gather information to inform entities’ strategies, manage risks and achieve a stronger, more sustainable performance over the long term.”  

Present during the event was the RBA CEO, Mr. Charles Machira, who underscored the importance of adopting ESG principles in financial reporting by Retirement Benefits Schemes.

“In the pension industry, stakeholders are demanding for disclosures on sustainability strategies. As a way of promoting governance and enhancing confidence in the pension sector, I look forward to enhanced disclosures on the impact, opportunities and risks that have arisen with adoption of ESG Principles,” said Mr. Machira. 

Equally, the CMA CEO, Mr. Wyckliffe Shamiah, said that business sustainability and climate-related disclosures are becoming a key consideration for publicly listed companies. This comes on the back of the publication of standards for Sustainability-related Financial Information (IFRS S1) and Climate-related Disclosures (IFRS S2) by the International Sustainability Standards Board (ISSB) 12 months ago.

“The finalization of the standards by ISSB marks an important step in the development of a global baseline for sustainability disclosures to support transparency and comparability in the capital markets. The Standards are expected to enhance trust and confidence in company disclosures about sustainability’’.

ABOUT THE FIRE AWARD

The Financial Reporting (FiRe) Award is the most prestigious and coveted Award in East Africa for financial reporting. The Award is carried out annually, in a colourful, gala evening hosted by the joint promoters. The FiRe Award has been recognized and awarded the best reporting entities in East Africa. The Award aims to promote integrated reporting by enhancing accountability, transparency, and integrity in compliance with appropriate financial reporting framework and other disclosures on governance, social and environmental reporting by private, public and other entities domiciled in East Africa. Visit the website: http://www.fireaward.org for more information.

ABOUT THE PROMOTERS

INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF KENYA: 

The Institute of Certified Public Accountants of Kenya (ICPAK) is a statutory body that regulates the profession of accountancy in Kenya. The Institute of Certified Public Accountants of Kenya (ICPAK) is a statutory body of accountants established under by the Accountants Act of 1978, and as repealed under the Accountants Act Number 15 of 2008, mandated to develop and regulate the Accountancy Profession in Kenya. It is also a member of the International Federation of Accountants (IFAC), the global umbrella body for the accountancy profession. For more information, please contact: Mercelline Maroma, Head of PR and Corporate Communications on Email: mercelline.maroma@icpak.com

PUBLIC SECTOR ACCOUNTING STANDARDS BOARD:

The Public Sector Accounting Standards Board (PSASB) was established under sections 192 to 195 of the Public Finance Management (PFM) Act 2012. The Board is mandated to provide frameworks and set generally accepted accounting standards for the development and management of accounting and financial systems and internal audit procedures by state organs and public entities as spelt out under Section 194 of the PFM Act.

For more information, please contact: Benuel Bosire, Head of Public Relations and Communications on Email: benuel.bosire@psasb.go.ke

NAIROBI SECURITIES EXCHANGE: 

The Nairobi Securities Exchange (NSE) is the principal securities exchange of Kenya. Besides equity securities, the NSE offers a platform for the issuance and trading of debt securities. The NSE is a member of the African Securities Exchanges Association (ASEA) and the East African Securities Exchanges Association (EASEA). It is an affiliate member of the World Federation of Exchanges (WFE), an associate member of the Association of Futures Markets (AFM) and a partner Exchange in the United Nations Sustainable Stock Exchanges Initiative (SSE).

For more information, please contact: Boniface Mbogo, Senior Officer, Communications on Email: bmbogo@nse.co.ke

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 and 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

RETIREMENT BENEFITS AUTHORITY: 

The Retirement Benefits Authority (RBA) was established under the Retirement Benefits Act and is mandated to regulate and supervise the establishment and management of retirement benefits schemes; protect the interests of members and sponsors of retirement benefits sector; promote the development of the retirement benefits sector; advise the Cabinet Secretary, National Treasury and Economic Planning on the national policy to be followed with regard to retirement benefits industry and implement all government policies relating to the retirement benefits industry.

For more information, please contact: James Ratemo, Head of Corporate Communications on Email: jratemo@rba.go.ke

cma

CMA Licenses Three Coffee Brokers

Nairobi, 01 August 2024…The Capital Markets Authority (CMA) has announced the issuance of full coffee brokerage license to three companies allowing them to trade at the Nairobi Coffee Exchange. The expansion of the pool of licensed coffee brokers is anticipated to spur the uptake of new commodities products and services and grow market turnover.

Nandi Coffee Co-operative Union Coffee Brokers Limited, Meru South Coffee Marketing Company Ltd and Minnesota Coffee Importers Limited have satisfied all requirements of the Capital Markets Act and Capital Markets (Coffee Exchange) Regulations, 2020. This brings the number of fully licensed coffee brokers to 16.

“The Authority continues to implement coffee reforms at its level and as a member of the National Task Force on Coffee Sub-Sector Reforms. We see these reforms contributing to the uptake of commodity markets products and services while enhancing the experience of our customers in the coffee value chain” said CMA CEO Wyckliffe Shamiah.  

CMA added that it has granted a six-month extension to New Kenya Planters Co-operative Union PLC (NKPCU) to continue operating as a conditionally licensed coffee broker. The extension will lapse in February 2025.

The licenses will remain in force unless otherwise suspended or revoked following the necessary due process.

 

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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

cma

CMA Approves Three New Firms as License Holders

Nairobi, 01 August, 2024…The Capital Markets Authority (CMA) has granted a license to Mi Vida Homes Limited to operate as a REIT Manager in a bid to deepen and develop the capital markets.

‘The newly licensed REIT Manager joins other licensees to facilitate the development of real

estate infrastructure and thus support the national government agenda for affordable housing’, CMA CEO Wyckliffe Shamiah noted.  As a REIT Manager, the company will provide real estate management services in respect of a real estate investment trusts (REITs).

The Authority has also licensed Kingsland Court Trustee Services Limited as a corporate trustee and Mirova Sunfunder East Africa Limited as an investment adviser.

Simultaneously, Securities Africa Kenya Limited has been upgraded from a licensed stockbroker to investment bank.

The licenses will remain in force unless otherwise suspended or revoked following the necessary due process.

 

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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

cma

CMA approves establishment of new Unit Trust Sub-Funds

Nairobi, 01 August 2024…The Capital Markets Authority (CMA) has approved the registration of new unit trust sub-funds pursuant to the Capital Markets Act, the Capital Markets (Collective Investment Schemes) Regulations, 2001 and the Capital Markets (Alternative Investment Fund) Regulations, 2023.               

‘Interest in Collective Investment Schemes (CIS) has been driven mainly by increased awareness in the retail sector as well as the digitization of value chains with reduced access barriers and costs. We remain focused in our effort to increase uptake of capital markets products through these vehicle’, CMA CEO Wyckliffe Shamiah said.

CPF Asset Managers has been allowed to operate four new sub-funds; CPF Money Market Fund, CPF Balanced Fund, CPF Bond Fund and CPF USD Money Market Fund.

Investcent Investment Bank has been approved to establish 10 funds namely Investcent Multi-Asset Special Fund (KShs and USD), Investcent Shariah Multi-Asset Special Fund (KShs and USD), Investcent Green Special Fund (KShs and USD), Investcent Hedge Fund (KShs and USD) and Investcent Money Market Fund (KShs and USD).

Furthermore, Spearhead Africa Asset Management Limited has been approved to establish the Spearhead Africa Infrastructure (Special) Fund.

Renaissance Capital (Kenya) Ltd has received the greenlight to operate the Rencap Unit Trust Scheme comprising five sub-funds, Rencap Money Market Fund (KShs and USD), Rencap Balanced Fund (KShs) and Rencap Fixed Income Fund (KShs and USD).

Britam Asset Managers Limited has been approved to operate Britam Fixed Income Fund (USD).

Standard Investment Bank (SIB) Mansa X has been approved to operate four new Kenya Shilling and US dollar sub-funds namely Mansa X Special Fund (KShs and USD) and Mansa X Special Shariah Fund (KShs and USD).

The Authority also approved registration of GulfCap Investment Bank Limited (GCIB) unit trust scheme comprising GCIB Multi-Asset Special Fund, GCIB Shariah Fixed Income Fund and GCIB Shariah Multi-Asset Special Fund.

The approvals will remain in place perpetually unless revoked at the request of either the firm or by the Authority. The approval brings the number of registered collective investment schemes (CIS) to 40.

 

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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 registration of Arvocap Asset Managers Unit Trust Scheme

Nairobi, 15 May 2024…The Capital Markets Authority (CMA) has approved the registration of Arvocap Unit Trust Scheme pursuant to the Capital Markets Act and the Capital Markets (Collective Investment Schemes) Regulations, 2001.

The collective investment scheme comprises 10 sub-funds including Money Market Fund, Ngao Fixed Income Distribution Fund, Almasi Fixed Income Accumulation Fund, Eurofix Fixed Income Special Fund (USD), Thamani Equity Fund, Africa Equity Special Fund, Global Equity Special Fund, Multi-Asset Strategy Special Fund (USD), Global Sharia Equity Special Fund (USD) and Mabruk Sharia Special Fund (KES)

‘Collective investment schemes are significant vehicles through which retail investors can easily participate in the capital markets, noting their ability to facilitate growth of customer base and democratization of wealth’, noted CMA CEO Wyckliffe Shamiah. CMA projects that the value of assets under management will grow by nine percent in 2025 up from the three percent growth recorded in 2022, given the value proposition of the investment vehicles. Mr. Shamiah said that the Authority had licensed 22 new fund managers since 2020, demonstrating interest from the market.

The Authority also approved registration of additional sub-funds within existing unit trust schemes including Old Mutual Special Fixed Income Fund, NCBA Global Equity Special Fund and Global Fixed Income Special Fund, KCB Wealth Fund (Special Fund), Jubilee Money Market Fund (USD) and Jubilee Enhanced Fixed-Income Special Fund.

 

The approvals will remain in place perpetually unless revoked at the request of either the firm or by the Authority. The approval brings the number of registered collective investment schemes (CIS) to 37.

 

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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 enhances competition, grants five new licenses

Nairobi, 7 May, 2024…Capital Markets Authority has given the greenlight to five new firms to operate in the industry in different capacities in the latest move to deepen and develop the capital markets.

In line with the Capital Markets (Licensing Requirements) (General) Regulations 2002, Tim Walsh Advisory Services has been licensed as an Investment Adviser whereas IC Markets Kenya Limited has been licensed to operate as a non-dealing online foreign exchange broker. GTXN Investments Limited is approved to carry on the business of a fund manager.

‘The increasing demand for licenses in the intermediary sector in recent years is a positive emergence as it enhances competition, innovation and the reach of capital markets products and services to retail investors’, CMA CEO Wyckliffe Shamiah said. He noted that this was significant as the regulator’s focus is to balance the diversity of investors by encouraging greater participation in the capital markets from retail investors. All employees with direct dealings with clients will be required to undertake the Securities Industry Certification Programme (SICP) within one year from the date of licensure.

CMA noted that Kirinyaga Slopes Coffee Brokerage Company Limited which had previously been conditionally licensed to operate as a coffee broker at the Nairobi Coffee Exchange, has now been granted full license status, having satisfied all the requirements of the Capital Markets Act and Capital Markets (Coffee Exchange) Regulations, 2020.

Coffee Estates Bourgeoisie Brokers Limited, has been granted a conditional license valid for six months to operate as a coffee broker subject to full compliance with the Capital Markets Act and Coffee Exchange Regulations.

The licenses will remain in force unless otherwise suspended or revoked following the necessary due process.

 

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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

cma

East African Securities Regulators agree on to develop regional frameworks for sustainability linked financing and carbon credit markets.

Nairobi, 06 May 2024, The regional capital markets regulators, under the umbrella of East African Securities Regulatory Authorities (EASRA) have resolved to develop a regulatory framework for sustainable finance with a view to developing a harmonised regional framework.

The framework will provide standards for regulating sustainability linked issuance of securities, use of proceeds, projects evaluation, and reporting. As testament of the iron-clad commitment of the regulators towards contributing to the net-zero agenda, regional regulators will also conduct a regional study on carbon credit market with the view to gaining an understanding of the existing stakeholders and the regulatory framework, which would then inform an East African regional carbon credit framework for domestication at national level.

Speaking at the meeting, the Chairperson of EASRA, Ms. Josephine Okui Ossiya, who is also the Chief Executive Officer of the Capital Markets Authority Uganda said that EASRA was keen on developing a new strategic plan for the next five years (2024 – 2029). To ensure that the plan meets the long-term funding needs of the region, it will be anchored on the East African Community Vision 2050, the African Union Agenda 2063 and the United Nations Sustainable development goals. She added that, “For relevance and the necessary buy-in, the strategic plan development process will see a wide variety of stakeholders being consulted, on what they would wish to see regional capital markets regulators do to facilitate capital raising while ensuring investor protection. We shall be reaching out to market intermediaries across the East African region to get their views on challenges they face and proposals on regulatory interventions that could eliminate the hurdles and ease market development.”

At the same meeting, the regulators also deliberated on key emerging issues in the region including oversight of commodities exchange markets, supervision of over-the-counter markets, segregation of client assets, making private capital financing work for Small and Medium Enterprises, operation of regulatory sandboxes and growth of collective investment schemes. They noted the need to ensure the EAC market is homogeneous. 

The committee further underscored the risks presented by macro-economic stability and urged members to develop local investor bases to mitigate the risk of reversal of inflows from off-shore investors. It was noted that EASRA remains a powerful platform to learn from each other and also identify early warning signs that may have a ripple effect on the region. To this end, the members committed to ensure continued information sharing.

The Chairperson welcomed the full establishment of CMA-Burundi. She further tasked the technical committees to expedite the process of bringing on-board the Democratic Republic of Congo, Republic of South Sudan and Somalia in fulfilment of the regional agenda of creating an integrated capital market.

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