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  • Quarterly Statistical Bulletin

    A quarterly publication of the Capital Markets Authority

  • BestCompanytoWorkFor
  • competitive
    A proactive regulator of competitive and robust capital markets
  • Developing Kenya
    Developing Kenya's capital markets to be an investment destination of choice through facilitative regulation and innovation.
  • facilitative policy
    Establishing a robust, facilitative policy, legal and regulatory framework for capital markets development
  • Promoting investor education
    Promoting investor education, awareness and interest in the capital markets
  • Strengthening institutional
    Strengthening institutional capacity to effectively and efficiently deliver on its mandate

Latest News Enhanced

  • Wed 01 Mar 2017

    ASSISTANT MANAGER PROCUREMENT - REF: DCS /AMP/01/ 2017 –CONTRACT

      POSITIONS ANNOUNCEMENT- CMA WEBSITE   The Capital Markets Authority is a statutory agency charged with the responsibility of regulating and developing an efficient capital market in Kenya. The Authority invites applications from dynamic, goal-oriented, high performers, with strong problem-solving skills, for the following positions:  ASSISTANT MANAGER PROCUREMENT - REF: DCS /AMP/01/ 2017 –CONTRACT   Reporting to the Director Corporate Services, the Assistant Manager Procurement will be responsible for the Management of the supply chain function at the Authority, coordinating all procurement and disposal activities thereof and coordinating the internal monitoring and evaluation of the supply chain function.   Key Duties & Responsibilities:   ·         Lead and manage the procurement function while ensuring governance and compliance with the public procurement regulations. ·         Develop, facilitate, implement, monitor & review of procurement plans. ·         Develop and streamline the procurement function in line with and in compliance to the Public Procurement Act 2005, its revisions, regulations and Government policy. ·         Develop, review, facilitate and implement management initiatives for cost reduction plans. ·         Perform secretarial role to the relevant Committees. ·         Coordinate the preparation of tenders for advertisement, opening and evaluation. ·         Recommend a negotiating team for appointment by the Accounting Officer where negotiations are allowed by the Act and Regulations participate in such negotiations and liaise with respective directorates in contract management thereof. ·         Monitor contract management by user departments to ensure implementation of contracts in accordance with the terms and conditions of the contracts. ·         Advise the Authority on aggregation of procurement to promote economies of scale. ·         Prepare and submit to the PPRA quarterly procurement reports as required. ·         Coordinate preparation of the Authority’s Annual Procurement Plans. ·         Provide information, as required for any petition or investigation to debar a Tenderer or any investigation under review procedures. ·         Liaise with PPRA and other bodies on matters related to procurement. ·         Advise directorates and staff on all matters to do with procurement of goods and services in line with the provisions of the Procurement Act and the Regulations. ·         Monitor and manage performance by implementing the Authority performance management system ·         Delegate and empower the department’s employees to perform. ·         Ensure a productive and motivated team through participative management and ongoing, open communication. ·         Adhere to required Authority and legislative procurement practices, polices and processes. ·         Identify development requirements of staff and assist them in meeting their training, coaching and mentoring requirements. ·         Draft staff work plans and ensure their implementation.   Minimum Requirements ·         A Degree in  Supplies Management or any other relevant degree ·         A post graduate diploma in Supplies Management ·         Membership to relevant professional body   Experience: Minimum of six (6) years relevant work experience   Key skills, Knowledge & Competencies ·         Knowledge of the Public Procurement Act and Regulations. ·         High level of attention to detail. ·         High integrity. ·         Good analytical skills. ·         Report writing skills. ·         Effective interpersonal skills. ·         Materials management skills. ·         Negotiation skills. ·         Record keeping skills. ·         Customer relations ·         Computer skills. Terms of Employment This is a Two -Year Contract with attractive remuneration and benefits renewable at the option of the Authority   If you meet the above requirements, please log into http://portal.cma.or.ke/erecruitment and follow the steps to submit an online application. Applications should be received on or before March 10, 2017 Only shortlisted candidates will be contacted for interviews. “Capital Markets Authority is an Equal Opportunity Employer. Persons with disabilities are encouraged to apply”.      
  • Thu 23 Feb 2017

    Premiere Capital Markets Soundness Report - Volume I

    Premiere Capital Markets Soundness Report - Volume I
  • Fri 17 Feb 2017

    CS. Hellen Kwamboka Ombati

    CS. Hellen K. Ombati CS. H. K Ombati is a holder of a Masters of Business Administration (MBA) in Strategic Management from the Catholic University of Eastern Africa and a Bachelor of Laws (LLB) from the University of Nairobi. She is a Certified Public Secretary and a member of the Institute of Certified Secretaries of Kenya (ISPCK), CS. H .K .Ombati is an advocate of the High Court of Kenya and a member of the Law Society of Kenya as well as the Chartered Institute of Arbitrators - UK and the Kenya Institute of Supply Management. She also holds a Diploma in French from Alliance Française - Paris. She joined the Capital Markets Authority (CMA) in May 2016 as the Head Legal Affairs and Corporation Secretary. Prior to joining the CMA, she served as the Manager Legal Services & Board Coordination at the Kenya Revenue Authority. CS. H.K Ombati has been involved in conveyancing practice, preparation of contracts and legal Agreements, Commercial Law as well as company secretarial work. She has also participated in civil society where she was engaged in civil litigation and prosecution of criminal cases at FIDA Kenya. She has also worked as a State Counsel at the Attorney General’s Chambers. Currently, she is practicing Securities and financial services law as well as commercial law.
  • Fri 17 Feb 2017

    Press Release: CMA approves listing of first Exchange Traded Fund in Kenya

    CMA approves listing of first Exchange Traded Fund in Kenya Nairobi February 17, 2017…The Capital Markets Authority (CMA) has granted approval for the listing of the first Exchange Traded Fund (ETF) in Kenya, to be issued by NewGold Issuer (RF) Limited. NewGold Issuer (RF) Limited, a company incorporated in South Africa. NewGold Issuer (RF) Limited will issue and list 400,000 Gold Bullion Debentures as a secondary listing on the Nairobi Securities Exchange (NSE) main investment market segment. The value of NewGold ETF tracks the price of gold. The listing price of the ETF will be determined on the listing date based on the real time cash market values of the gold price and the real time price of the Kenya Shilling. ETFs are a type of listed open-ended index or unit instrument bought or sold on a securities exchange. The index or unit may be composed of ordinary stocks, bonds, commodities, futures or a combination of real assets with the objective of allowing for exposure to a portfolio of securities, assets or indices whose price movement is in tandem with the price movement of the constituent underlying securities or commodities. An ETF can be a domestic or offshore product. The Authority developed Policy Guidance Notes in September 2015 to operationalize the trading of ETFs in Kenya. The Capital Market Master Plan prioritizes regional and international investment as one of the areas of focus. ETFs provide an opportunity for investors to diversify their investment portfolios to access international products. “This is a critical milestone in positioning Kenya as a gateway for regional and international capital flows by developing creative products that promote investor confidence in regional products. This is a step toward Kenya becoming a choice investment destination”, said CMA Chief Executive Mr. Paul Muthaura. The Authority observed that the Supplemental Prospectus of NewGold Issuer (RF) Limited makes adequate disclosure of material information in accordance with the requirements of the Capital Markets Act and the Exchange Traded Funds Policy Guidance Note, 2015 to enable investors make an informed decision on the issue. NewGold Issuer (RF) Limited, a wholly-owned subsidiary of NewGold Owner Trust, was primarily listed on ETF sector of the Johannesburg Stock Exchange in 2004. Other secondary listings of the ETF have been on the Botswana Stock Exchange, Stock Exchange of Mauritius, Namibia Stock Exchange and Ghana Stock Exchange (2012). The NewGold Gold Bullion Debentures issued subsequent to the secondary listing on the NSE will rank equally with each other and with all other Gold Bullion Debentures already in issue, prior to the NSE listing. NewGold Issuer (RF) Limited uses proceeds from the Issue to acquire Gold Bullion. Gold Bullion held by NewGold are physical unwrought gold in the form of London Good Delivery Bars. 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, Head of Corporate Communications on amwangi@cma.or.ke
  • Thu 02 Feb 2017

    IFC and Capital Markets Authority Kenya Build Capacity for 200 Directors of Listed Companies and Issuers

    In Nairobi                                                                                                                            In NairobiNeha Sud                                                                                                                            Antony MwangiPhone: +254-20-293-7403                                                                                                     Phone: :+254-20-226-4204E-mail: NSud@ifc.org                                                                                                           E-mail: Amwangi@cma.or.ke   In Washington, D.C.Loty SalazarPhone:1-202-458-2559E-mail: lsalazar@worldbank.org   Nairobi, Kenya, February 2, 2017 — International Finance Corporation (IFC), a member of the World Bank Group, and Capital Markets Authority (CMA) have kicked off the second phase of the capacity https://www.acheterviagrafr24.com/viagra-online/ building program for directors of listed companies and issuers focusing on the Code of Corporate Governance Practices for Issuers of Securities to the Public, 2015 (Corporate Governance Code). The capacity building program seeks to raise awareness on the requirements of the Corporate Governance Code among listed companies and issuers in order to enhance its application beginning March 2017. The program will see 200 directors sensitized over a four-day period from 2 – 7 February 2017. “Since we entered into the agreement with IFC in November 2016, we have observed overwhelming interest from issuers on the Corporate Governance Code. The first Corporate Governance Code Master class held in November 2016 attracted 80 CEOs, CFOs and CSs from listed companies and we are glad to see strong levels of interest from board members for the current round,” CMA Chief Executive, Paul Muthaura noted. The Authority noted that each of the two sessions of the Corporate Governance Master Class will take place over two days. The Corporate Governance Master Class is structured to cover specific Corporate Governance Code related topics such as board effectiveness, rights of shareholders, ethics and social responsibility, risk management and internal control, and disclosure, in order to empower board members to improve their company’s Corporate Governance practices and strengthen the functioning of their boards and control environments. “These capacity building programs are expected to strengthen corporate governance among issuers in the capital markets and as a result enhance investor confidence. This strengthening of governance practices is fundamental for issuers to succeed in mobilizing resources from the capital markets locally and globally, as well as to facilitate development and the achievement of ambitious plans outlined in the Vision 2030 and Capital Market Master Plan”, said Mr. Muthaura. ‘’Companies that practice good corporate governance tend to carry lower risk and generate higher returns for shareholders. They also have demonstrated better performance, and can secure cheaper capital and lower regulatory costs”, said Oumar Seydi, IFC Director for East and South Africa. The IFC in conjunction with the CMA has subsequently developed a corporate governance reporting framework which includes guidelines for reporting and a reporting template. The reporting framework will aid listed companies, issuers and governance auditors to structure compliance statements to reduce regulatory burden and ensure that shareholders and stakeholders are able to rapidly understand an issuer’s degree of compliance. The reporting framework will also present data in a structured format that allows for cross-company comparison. The partnership has also developed an assessment framework for use by CMA to assess the quality of corporate governance among issuers of securities in Kenya. The Corporate Governance Code is on an “apply or explain” principle. This means that an issuer may in some circumstances explain non-application of the Corporate Governance Code principles, guidelines and recommendations in favor of an alternative measure, as long as the alternative delivers a better standard of corporate governance. Where non-application delivers a lower standard of corporate governance, issuers will be expected to explain to the Authority, shareholders and stakeholders the reasons for non-application or partial application, the time frame required to meet each application requirement, and the strategies the issuer will put in place to progress to full application. Each issuer will be required to post on its website, the completed reporting template and send the same to the Authority within four months of the close of each financial year. The Authority noted that there are mandatory corporate governance provisions which were extracted from the Corporate Governance Code which an issuer must comply with. The mandatory provisions are prescribed in the Capital Markets (Securities) (Public Offers, Listing &Disclosure) Regulations, 2002. The IFC and Authority further observed that a pool of 21 executives have been through a rigorous Training of Trainers program on the Corporate Governance Code carried out in November 2016. The trainers will be able to support issuers through further in-depth and customized capacity building as issuers may require. CMA began implementing corporate governance reforms in 2012, which culminated in the enactment of the new Corporate Governance Code in March 2016. The Corporate Governance Code provided issuers with a transition period on one year, within which they should commence its application. IFC and CMA have also developed a Stewardship Code for Institutional Investors, which will soon be enacted. IFC has contributed to the adoption of 95 corporate governance codes, laws, and regulations in more than 30 countries worldwide. IFC’s Corporate Governance Program in East Africa is funded by the State Secretariat for Economic Affairs of Switzerland. About Capital Markets AuthorityThe 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, visit www.cma.or.ke. For more information contact: Antony Mwangi, Phone: +254-20-226-4204, Email: amwangi@cma.or.ke. Stay Connectedhttps://twitter.com/CMAKenyahttps://www.facebook.com/cmakenyahttps://www.youtube.com/user/kenyacma About IFC IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org Stay Connectedwww.facebook.com/IFCwbg; www.facebook.com/IFCAfrica www.twitter.com/IFC_org, www.twitter.com/IFCAfrica www.youtube.com/IFCvideocastswww.ifc.org/SocialMediaIndexwww.instagram.com\ifc_org About SECOSECO is Switzerland’s competence center for all core issues relating to economic policy. SECO’s economic development cooperation strives to achieve sustainable growth. Such growth is sustainable if it creates jobs, helps to increase productivity, to reduce poverty, inequalities and global risks. For more information, visit www.seco-cooperation.ch.

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Who we are

The Capital Markets Authority is an independent public agency established by an Act of Parliament, Cap 485 A under the Ministry of Finance. The Authority came into being on December 15, 1989 when the Act was passed and was inaugurated in March 1990.

The CMA is a regulating body charged with the prime responsibility of supervising, licensing and monitoring the activities of market intermediaries, including the stock exchange and the central depository and settlement system and all the other persons licensed under the Capital Markets Act. It plays a critical role in the economy by facilitating mobilization and allocation of capital resources to finance long term productive investments. 

 

What We Do 

The Authority derives its powers to regulate and supervise the capital markets industry from the Capital Markets Act and the Regulations issued there under. The regulatory functions of the Authority as provided by the Act and the regulations include the following:  

  •  Licensing and supervising all the capital market intermediaries
  •  Ensuring proper conduct of all licensed persons and market institutions.
  •  Regulating the issuance of the capital market products (bonds, shares etc )
  •  Promoting market development through research on new products and institutions.
  •  Promoting investor education and public awareness
  •  Protecting investors’ interest 

Composition of the Board 

The Board provides the overall policy direction and leadership to the Authority. Its commitment, professionalism, diversity of talent and experience and independence of mind are critical factors in the successful execution of the mandate of the Authority. The primary responsibility of the board is the protection of the interest of investors, the government, employees, issuers of securities and the market intermediaries.

The board of directors of the Authority consists of –

  1.  A Chairman appointed by the President on the recommendation of the Cabinet Secretary of The National Treasury;
  2.  Six other members appointed by the Cabinet Secretary;
  3. The Principal Secretary of the National Treasury or a person deputed by him;
  4. The Governor of the Central Bank of Kenya or a person deputed by him;
  5. The Attorney General or a person deputed by him;
  6. The Chief Executive of the Authority, who serves for a four-year term and is eligible for re-appointment for another four-year term. 

The chairman and the six members are persons who have experience and expertise in legal, financial, banking, accounting, economics or insurance matters, serve for a period of three years and are eligible for re-appointment for another three years. 

 

How We Regulate and Develop the Capital Markets 

The Authority, led by the Board of Directors and supported by the Chief Executive together with the management, carries out its mandate of regulating and developing the Kenyan capital markets through a regulatory framework that is deliberately designed to meet this objective. 

 

The Enabling Legislation 

Just like any other industry, the capital markets industry operates within a certain regulatory framework which the players in this industry must adhere to in the course of offering their services. Since inception, the Authority has strived to deepen and broaden the capital markets by developing a regulatory framework that facilitates the development of new financial products and institutions through research and ensuring fairness and orderliness in the capital markets industry. The regulatory framework of the Authority is comprised of the following: 

 

Main Acts  

  1. The Capital Markets Act;  
  2. The Central Depositories Act, 2000 

Regulations and Rules  

  1. The Capital Markets (Collective Investment Schemes) Regulations, 2001
  2. The Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations, 2002
  3. The Capital Markets (Licensing Requirements) (General) Regulations, 2002
  4. The Capital Markets (Takeovers and Mergers) Regulations, 2002
  5. The Capital Markets (Foreign Investors) Regulations, 2002
  6. The Capital Markets Tribunal Rules, 2002
  7. The Capital Markets Asset Backed Securities Regulations 2007
  8. The Capital Markets (Registered Venture Capital Companies) Regulations 2007.
  9. The Capital Markets(Conduct of Business) (Market Intermediaries) Regulations 2011 
  10. The Capital Markets(Corporate Governance) (Market Intermediaries) Regulations, 2011
  11. The Capital Markets (Demutualization of the Nairobi Securities Exchange Limited) Regulations 2012
  12. The Capital Markets Futures Exchanges Licensing Requirements Regulations 2013
  13. The Capital Markets Real Estate Investment Trusts Collective Investment Schemes Regulations 2013  

Guidelines 

  1. Guidelines on Corporate Governance Practices by Public Listed Companies
  2. Guidelines on the Approval and Registration of Credit Rating Agencies
  3. Guidelines on Financial Requirements for Market Intermediaries

The above Acts, Regulations as well as the Guidelines are what the Authority uses to supervise and regulate the market intermediaries. The regulatory framework is crafted in such a way that it encourages self regulation to the maximum practical extent. 

For more information on regulations please refer to the Regulatory Framework section of this website 

 

Who Are Our Licensees 

  • The Authority licenses the following categories of market players:
  • Securities Exchanges
  • Central Depositories
  • Investment Banks
  • Stockbrokers
  • Dealers
  • Investment Advisers
  • Fund Managers
  • Authorized Securities Dealers
  • Authorized Depositories (Custodians)
  • Credit Rating Agencies
  • Venture Capital Companies
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Contact Us

Embankment Plaza, 3rd Floor
Longonot Road, off Kilimanjaro Avenue, Upperhill
P.O Box 74800-00200, Nairobi Kenya
Tel: +254 20 2264400/ 2264900/ 2221910/ 2221869
Backup Wireless Lines: 0722 207767/ 020 2611464
Cell: +254 722 207767, Email: corporate@cma.or.ke