NAIROBI, Kenya December 15 – The Capital Markets Authority (CMA) has completed the review of the Capital Markets Master Plan (CMMP, 2014-2023), with support from FSD Africa.
The plan was developed in close collaboration with stakeholders in the capital markets sector with the aim of mobilizing savings and stimulating investments to the levels necessary to achieve the aspirations of Vision 2030.
“The CMMP has been revised to realign it with emerging priorities in the wake of the economic disruption of Covid-19, changes in the local and global environment and disruption caused by technological developments in capital markets,” said Wycliffe Shamiah, CEO of CMA.
Shamiah explained that the impact of the full implementation of the revised master plan will be an increased mobilization of capital to the real economy through strengthening regulatory frameworks and the deployment of alternative products.
Some of the main changes in the revised master plan are: clarification of the complementary roles of CMA-Kenya and the Nairobi International Financial Center Authority (NIFCA) in the promotion and regulation of capital markets;
The plan will include guidelines on how the Authority and other financial sector regulators can work in harmony with NIFCA to align their regulatory frameworks with international best practices in order to attract foreign investors.
Other changes include: measures to catalyze activity in private equity and debt capital by making the asset class more accessible to asset managers, pension plans and the grassroots investors in general for the benefit of investors and companies; and leveraging environmental, social and governance principles to attract green capital, with an emphasis on developing a green taxonomy for Kenya beyond climate finance for natural capital / conservation.
Shamiah added that some of the new focus areas for implementation include: access to investment for retail and institutional investors leveraging mobile and other online technologies; and a significant increase in the use of capital markets and listings by small and medium-sized enterprises (SMEs).
Other priority areas that have been re-emphasized in the revised CMMP are increasing the liquidity of equity and debt markets through the deployment of capital market liquidity tools such as market making, short sales, margin trading, securities lending and borrowing, and over-the-counter (OTC).
“This review of the Capital Market Master Plan, supported by the UK government, will help solidify Kenya’s position as a financial services hub in the region and provide much needed green finance to help Kenya recover from COVID -19 and to fight against climate change, ”said Jane Marriott, British High Commissioner to Kenya.
Mark Napier, Managing Director of FSD Africa, said an update to Kenya’s capital market master plan is timely as it allows market players to realign their efforts on capital market development with a focus on economic resilience and sustainable growth. .
As part of the regional regulatory support program in Africa, FSD Africa provided technical assistance for the revision of Kenya’s CMMP.