SPEECH BY THE A.G CHIEF EXECUTIVE CAPITAL MARKETS AUTHORITY, MR PAUL MUTHAURA ON THE GRAND FINALE CEREMONY OF THE KABARAK UNIVERSITY CAPITAL MARKETS UNIVERSITY CHALLENGE ON FRIDAY, JUNE 20TH, 2014 AT KABARAK UNIVERSITY
Chairman of the Kabarak University Governing Council Prof. John K. Lonyangapuo;
Vice Chancellor of Kabarak University Rev. Prof. Jones Kaleli;
Deputy Vice Chancellor of Kabarak University, Prof.Kefa Rabah;
Members of staff;
Ladies and Gentlemen:
It gives me great pleasure to here at Kabarak University once again to celebrate the winners of the Kabarak University Capital Markets Challenge.
Ladies and Gentlemen;our being here today is a culmination of a journey that began last year when the first preparatory meeting of the challenge was held between the Authority and members of the university teaching fraternity from the Business School led by the Dean Prof Alan Katwalo to lay down the framework for the challenge. This was followed by the First stage of the challenge on May 22nd, 2014 and a subsequent official launch of the Challenge where I was humbled to be the Chief Guest on June 4th, 2014. This was followed by the second stage on June 4th and 5th, 2014 giving way to the final stage that was completed yesterday where the 10 finalists battled out for the top prizes;
Ladies and Gentlemen; I would like to register the Authority’s appreciation to all the students who took the time to participate in the Challenge more so to the 25 students who made it to the second phase of the challenge and finally I salute the 10 finalists. Your dedication and knowledge of the capital markets will stand you good stead in your future success and participation in the development of our great nation particularly with respect to Vision 2030. Although there are several prizes to be won by the top winners, everyone who participated is indeed a winner based on the information obtained and the experience gained.
Although there are several winners today, bear in mind that the main objective of the challenge is to facilitate an environment that encourages research, discussions and participation in the capital markets. The Kabarak University Capital Markets Challenge primarily focused on testing the participants’ knowledge and understanding of capital markets and financial issues. The Challenge also tested the participants’ analytical, presentation, organizational and communication skills and the ability of the students to apply their knowledge on capital markets, saving and investment to real life situations. The fruits of your labor will in no doubt be reflected in a few years to come;
Ladies and Gentlemen; The Authority will continue to recognize today’s youth as the key to Kenya’s economic success. Let me reiterate that The Kabarak University Capital Markets Challenge compliments the initiatives that we have been undertaking together with our stakeholders, which include participation in universities’ and schools’ fairs across the country as well as hosting students at our offices in Upper Hill. This is part of the Capital Market Authority’s long term strategy of broadening the investor base by embracing the youth who form the majority of the country’s population;
The Kabarak University Capital Markets Challenge has made great leaps in what it set out to do, which was to enlighten young Kenyans on the opportunities presented by investing in financial products, promoting a savings culture among the youth as well as informing the youth on the returns and risks associated with such investments and lastly the protective measures put in place by the Capital Markets Authority for those who invest in these products;
Ladies and Gentlemen; To further demonstrate the Authority’s commitment to continuously creating a more robust investor education outreach programme as a complement to the Kabarak University Capital Markets Challenge allow me to highlight some key initiatives: I am indeed enthused to inform you that we are currently finalizing a study on the capital markets investor profiles which will enable the Authority to achieve its mandate by adopting a more focused and targeted investor education strategy informed by scientific data received from this study. More specifically, the study will enhance the quality and quantity of information available on capital markets for each market segment as well as increase avenues and programmes for the delivery of investor education and public awareness. The results of the study will be shared with stakeholders once finalized.
In addition, the Authority is currently collaborating with the Kenya Institute of Curriculum Development in partnership with the Financial Sector Regulators (Retirement Benefits Authority, Insurance Regulatory Authority, Central Bank of Kenya and the Sacco Society Regulatory Authority) to infuse financial information in the curriculum to students beginning at a young age so as to encourage a savings and investment culture.
I am also pleased to announce that the Authority will be conducting a national trivia competition targeting current and potential investors through the use of mobile technology. This is expected to generate significant interest and dialogue along the investment front. I urge everyone in this room to participate once it is launched. You will hear more about the National Trivia competition within the next few weeks.
Ladies and Gentlemen; you will agree with me that investor education initiatives such as the University Challenge not only increase the understanding of financial and capital markets but will also boost investor confidence in our country. Increased investor confidence leads to more players entering the markets which in turn creates a robust financial and capital markets industry;
Arguably, the development of capital markets depends to a large extent on the volume and quality of engagement by investors. Investors are therefore a backbone of these markets. They not only determine the level of activity in the securities market but also the level of activity in the economy. The Authority therefore recognizes its Investor protection role as a key mandate. One of the ways of protecting the investors is to empower them through information and knowledge such as the University Challenge;
I am pleased to learn that a considerable number of students from various academic disciplines outside of Business, Finance and Economics participated in the Challenge successfully. Let us all continue to harness the momentum of the challenge by becoming Ambassadors to the rest of your classmates, friends and families.
Ladies and Gentlemen; this is not the end of our collaboration with Kabarak University. Solid partnerships are an effective tool that supports an organization’s business, and objectives. It involves situation analysis, team work, conceptualizing appropriate strategies and action plans, and determining the measurement of results. It also entails the coordination of multiple methods to achieve specific results. In addition to several planned initiatives with Kabarak University, the Authority is looking at the modalities of enlarging the University Challenge to more institutions across the country.
Ladies and Gentlemen; to further appreciate collaborative efforts with stakeholders in building our nation, I urge each and every one of you to visit our website at www.cma.or.ke and read the Capital Markets Master Plan which is a comprehensive plan charting the strategic positioning and future direction of the Kenyan capital markets over the next 10 years. Enhancing consumer education and literacy is listed as one of the initiatives that will support the development of economic transformation. It is in this regard that I can assure you that the Authority will continue to play its pivotal role in creating awareness through various fora.
Ladies and Gentlemen; The Authority would like to register its appreciation to all those who have been instrumental in making this challenge a success. Special thanks go to the members of the university teaching fraternity of the Business School led by the Dean of the School of Business Prof Alan Katwalo for their support and co-operation throughout the period of the challenge and most importantly our stakeholders who have been kind enough to participate as exhibitors this week. A special thanks to my team too for all the tireless work that has paid off as witnessed here today.
We would also like to thank the students for their participation and dedication since without this the challenge would not have taken place. We would also like to observe that throughout all the phases of the competition, the students demonstrated the highest level of understanding of capital markets issues. Last but not least we would like to congratulate the winners of the competition and also the students who have participated in the competition.
In conclusion, Ladies and Gentlemen, I am confident that this University Challenge and our complementally collaborative efforts in creating financial literacy will create a pathway to increased financial awareness which in turn will serve as a prerequisite for wealth creation amongst the youth.
Once again I congratulate you all.