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CMA licenses three new corporate trustees

Nairobi, 21 May 2025… The Capital Markets Authority (CMA) has licensed three new corporate trustees to support the growing Collective Investment Schemes (CIS) market in Kenya. These trustees will provide oversight for investment vehicles such as unit trusts, mutual funds, and other collective investment structures.

The newly licensed entities are;

MTC Trust & Corporate Services Limited, which offers a broad range of fiduciary and trustee services to private entities. The firm also provides security trustee services and manages specialized structures.

Standard Chartered Bank Kenya, which has now expanded into corporate trustee services. The bank has been a major player in custody services since 2010 and currently holds the largest market share in that segment.

NCBA Group Plc, which has been licensed to offer corporate trustee services as part of its broader custody solutions. The bank aims to deepen its investment services offering by incorporating CIS trustee functions into its portfolio.

The licensing of these trustees comes at a time when demand for Collective Investment Schemes continues to rise, crossing the Ksh.400 billion mark. This is mainly driven by both retail and institutional investors seeking professionally managed, diversified investment options. Corporate trustees play a critical role in safeguarding investors’ interests by ensuring that fund managers operate in compliance with scheme documents and regulatory requirements.

The move underscores CMA’s commitment to strengthening investor protection and supporting the growth of a robust, transparent capital markets ecosystem in Kenya.

 

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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 signs the Enhanced Multilateral Memorandum of Understanding to enhance investor protection

Nairobi 14 May 2025… In line with its investor protection mandate, the Capital Markets Authority (CMA) Kenya has signed the Enhanced Multilateral Memorandum of Understanding (EMMoU). The EMMoU is set  to enhance and advance mutual cooperation and the exchange of information among securities regulators across the globe with an objective to strengthen financial market integrity and investor protection.

The EMMOU was signed during the 50th Annual Meeting of the International Organisation of Securities Commissions (IOSCO) held 12-14 May in Doha, Qatar. CMA Kenya is a member of IOSCO. Kenya is the 28th country to sign the EMMoU among 130 jurisdictions, which are IOSCO members.

IOSCO is a standard setting body representing 95 percent of the world’s securities regulators. It is governed by a Board which comprises 35 securities regulators.

The EMMOU ensures investors are protected by ensuring markets are fair, efficient, and transparent. It is the global benchmark for international cooperation in the enforcement of securities laws and regulations, considering the evolution of technology. This has changed the landscape for enforcement and cooperation among securities regulators.

 

Speaking during the signing ceremony, the CMA Kenya Chief Executive Officer, Mr. Wyckliffe Shamiah, appreciated the IOSCO leadership for allowing CMA Kenya to sign the EMMOU. Mr. Shamiah noted this is aligned to the Authority’s ambition, as espoused in the 2023-2028 Strategic Plan, to build resilient markets, increase inclusivity and enhance investor confidence.

Mr. Shamiah observed; ‘’increased globalisation, interconnectedness of financial markets, and advancements in technology have changed the way the securities industry operates and how violations of securities laws occur. This has led to a changed approach in regulatory oversight, where enhanced and timely information sharing and cooperation, have become corner stones of effective investigation of breaches and enforcement actions’’.

The global financial crisis raised concerns around information sharing and cooperation between IOSCO members; keeping pace with technological and market developments; bolstering deterrence; and ensuring IOSCO continues to meet its objectives.

The EMMOU was developed to enable securities market regulators ensure continued effectiveness in safeguarding market integrity and stability, protecting investors and deterring misconduct and fraud.

The EMMoU is expected to foster greater cross-border enforcement cooperation and assistance among securities regulators, enabling them to respond to the risks and challenges posed by globalisation and advances in technology.

 

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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 structured 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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Request For Stakeholder And Public Feedback On The Draft Capital Markets (Corporate Governance)(Market Intermediaries) Regulations, 2025

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

In this regard, the Authority has reviewed the Capital Markets (Corporate Governance) (Market Intermediaries) Regulations, 2011 in a bid to make them responsive to market needs and address new and emerging issues and has developed the draft Capital Markets (Corporate Governance) (Market Intermediaries) Regulations 2025.

In accordance with Section 12A (3) of the of the Capital Markets Act the Authority now invites stakeholders and the general public to submit comments on the draft Regulations, available on Draft Regulations. Kindly submit your comments by May 22, 2025.

The Chief Executive Officer
Capital Markets Authority
P.O. Box 74800-00200 Nairobi
3rd Floor, Embankment Plaza
Longonot Road, Upperhill
Email: comments@cma.or.ke
Website: www.cma.or.ke

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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 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

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