PRESS RELEASE

CMA welcomes two new firms to the Regulatory Sandbox

Nairobi, 25 May 2021…The Capital Markets Authority (CMA) has admitted KOA Save Africa Limited and Moneto Ventures Limited to the Regulatory Sandbox. The two firms will test their innovations in a live capital market environment, in compliance with the CMA Regulatory Sandbox Policy Guidance Notes (PGN), in line with the commitment to develop and deepen the capital markets by facilitating the deployment of financial technology (fintech).

KOA Save Africa Limited has been admitted to the Regulatory Sandbox to test KOA App. The innovation seeks to help retail investors to easily, conveniently, and affordably, save and invest in the capital markets. KOA App is accessible to iOS and Android mobile users. The fully digital mobile application has the capacity to embed several collective investment schemes focusing on money market funds. KOA Save Africa will test its application for a period of six months.

Moneto Ventures Limited will test its Chumz App, a digital application also available on iOS and Android mobile devices. It uses behavioural psychology techniques to encourage users to save and build a culture of digital savings and investment. Moneto Ventures seeks to achieve this by ensuring minimum effort between the decision to save and invest, and the actual deposit while helping investors keep track of their progress on specific goals. Moneto Ventures will test its application in the Regulatory Sandbox for one year.

The CMA Chief Executive Mr. Wyckliffe Shamiah noted, ‘The Authority is delighted to welcome these new innovations for testing in the Regulatory Sandbox because if these innovations are successful, they will significantly reduce the barriers to entry into the capital markets for retail investors. This can be achieved by making collective investment schemes accessible to investors in a more affordable and convenient manner. Successful testing within the regulatory sandbox will ultimately enhance access, usage and the quality of products in the capital markets by leveraging technology.’

Mr. Shamiah also observed that the Authority had surpassed its target of admitting five firms to the Regulatory Sandbox by 2023, as outlined in the Authority’s Strategic Plan 2018-2023. The Authority has so far admitted nine firms. CMA recently published a report on the milestones it has achieved in the Regulatory Sandbox since its launch in March 2019.

ENDS

BACKROUND 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 & International Relations on This email address is being protected from spambots. You need JavaScript enabled to view it.

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