Speech For The Capital Markets Authority Chairman, Mr Kungu Gatabaki, During The Surplus Cheque Presentation To The Deputy Prime Minister And Minister For Finance, Hon Uhuru Kenyatta, 29th June 2011
3. In the advent of the new constitutional dispensation and the reform to build strong institutions greater corporate governance is expected.
4. Both local and international investors want to have confidence in our market. In this regard, we expect to work with the Government to position Kenya as the main investment destination in Africa –above South Africa and Nigeria.
5. Demutualization of the Nairobi Stock Exchange
The Authority continues to engage members of the NSE regarding implementation of demutualization. The Authority requests continued support from the DPM and Minister for Finance in ensuring the process remains on course and is completed in the shortest time possible.
6. Introduction of Derivatives and Futures Exchange
We appreciate Hon DPM and Minister for Finance your approval in May 2011 of the recommendations for implementation of a Commodity Futures Market in Kenya with key deliverables being that CMA will authorize and license a Commodity Futures Exchange; We have already begun the procurement process for a Derivatives and Futures Exchange. We assure you that we are working to develop the necessary regulatory and operational framework to facilitate the introduction of a Futures Exchange market.
7. Establishment of a market for SME Companies
In conjunction with the NSE and CDSC, the Authority has completed the policy framework and expects to complete the legal framework by September 2011.
8. Comprehensive review of the capital market legal framework
The Authority has completed the review of the capital markets legal and regulatory framework and will be submitting two new Acts to separate the law governing the establishment of the regulator on one hand and the securities industry on the other. The two Bills will be submitted on June 30, 2011 and the Authority seeks the support of the DPM and Minister for Finance to facilitate adoption by the Cabinet and subsequent tabling before Parliament for timely enactment.
In addition, the following set of regulations and guidelines are ready:
- The Capital Markets (Corporate Governance) (Market Intermediaries) Regulations
- The Capital Markets (Conduct of Business) (Market Intermediaries) Regulations
- The Capital Markets (Licensing Requirements) (General) (Amendment) Regulations
- The Capital Markets (Securities) (Public Offers, Listing and Disclosure) (Amendment) Regulations
Hon DPM, today we are here as the CMA Board to present to you the surplus cheque of Kshs 77.6 million for the 2009/2010 financial year.