OPENING REMARKS BY MR PAUL MUTHAURA, AG. CHIEF EXECUTIVE, CAPITAL MARKETS AUTHORITY, DURING THE LAUNCH OF THE EMBU CAPITAL MARKETS OPEN DAY AT MOI STADIUM ON MARCH 27TH, 2015
Governor of Embu County;
Chairman of the Kenya National Chamber of Commerce and Industry Embu Chapter;
Officials from the County Government of Embu;
Participating capital markets exhibitors;
Members of the fourth Estate;
Ladies and Gentlemen;
All protocols observed:
It is indeed my pleasure to extend to you all, on behalf of Capital Markets Authority, a very warm welcome to the Capital Markets Open Day in Embu County. Your commitment to playing your role towards the development of Embu County and Kenya as a whole is witnessed by your presence here today. I am confident that this Open Day will be very beneficial to all.
I am also thankful that the Governor of Embu County HE. Martin Wambora has taken time off his busy schedule to be with us today. This demonstrates the Embu County Government’s commitment to moving the County forward as well as playing its role in supporting initiatives aimed at strengthening our economy.
Ladies and Gentlemen: Financial literacy helps to inculcate individuals with the requisite knowledge to make strategic investment decisions for the future. Recent studies have shown that individuals who are less financially aware are likely to face more challenges with debt management, savings and credit, and are less likely to plan for the future. One of our critical mandates as a regulator is Investor Education and Public Awareness. It is in this regard that we organize events such as this Open Day to create a positive environment where current and potential investors interact with the market players and receive pertinent information on to wealth creation through the capital markets.
Ladies and gentlemen, as the former Provincial Headquarters of Eastern Province and arguably the birth place of SACCOS, Embu County is poised to be an economic County hub within this region. Further, with Agriculture being the backbone and livelihood of the people of Embu County, employing 70.1 per cent of the population while 87.9 per cent of the households are engaged in Agricultural activities, I am confident that the income and profits derived from the agriculture sector can be stretched further by investing within the capital markets.
Our presence here in Embu is part of a very elaborate investor education strategy to reach all 47 Counties in Kenya. The initiatives that we have brought to Embu County include: A Road Show that was held yesterday that covered the greater part of Embu County to generate interest for the Open Day as well as provide investment information; A Forum for the Business Community with potential to list at the Nairobi Securities Exchange that was held today morning and this Open Day that we are inaugurating now and that will run throughout today and tomorrow.
Ladies and gentlemen; The Authority will also partner with the County Government of Embu in providing solutions for raising capital to fund long term infrastructure projects. We note that one of the major challenges in Embu County has been the road network which is currently under construction. Access to water for domestic purposes and farming has been a great challenge. We applaud the Embu County Government for initiating a successful program dubbed 'Water for Children' which is set to ensure all public schools have access to clean water. I believe through this project 6,000 new domestic connections have been made through this project. In addition, through the Ministry of Agriculture in Embu County, we note that new irrigation projects have been started especially drip irrigation which has boosted Agricultural produce in the County. All these projects can be further financed and improved by funds raised through the capital markets.
Ladies and Gentlemen; I am confident that this Open Day and the events we have been having since yesterday will mark the beginning of a formidable partnership between the Authority and this county towards economic development of this nation. I am sure that you will receive pertinent information to inform accurate investment decisions at this Open Day.
In addition to several developments in the capital markets, allow me to highlight just two key ongoing initiatives that will be of interest to you:
a) The Authority commenced the process of compensation of former clients of Discount Securities Ltd (“DSL”) under statutory management through the CMA Investor Compensation Fund (ICF) on February 8, 2012. To enable customers’ access the funds more conveniently the Authority had procured the services of The Co-operative Bank of Kenya Limited for purposes of processing and disbursement of the funds. Investors were therefore accessing these services in any branch of the Cooperative Bank countrywide. We have begun a final call campaign to any former clients of the collapsed stockbroker who has a genuine claim to immediately file the claim with the Statutory Manager through the Co-operative Bank of Kenya. The process will end on June 30, 2015 after which no further claims will be accepted and the claims will deemed forfeited. I encourage all of us to notify anyone who may have been affected by this failures to visit a Cooperative Bank.
b) The Authority also has an exciting opportunity for professionals to conduct investor education speaking engagements targeting the Counties, among other target groups. The main objective of this initiative is to increase awareness and participation in the capital markets by effectively engaging the various constituents mentioned above. This is in line with one of the Authority’s mandate to promote Investor Education and Public Awareness throughout the Country. Please visit our website at www.cma.or.ke to receive more information how you can help increase financial literacy in the County of Embu.
The latter strategy is in line with 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.
Ladies and Gentlemen: in closing, I would like to register my appreciation to the County Government of Embu as well as the Kenya National Chamber of Commerce and Industry, Embu Chapter, for the concerted efforts in making this day possible. I am confident that this partnership will continue as we embark on serval planned initiatives. Last but not least, I thank the stakeholders that are here today for working in collaboration with the Authority in achieving our mandate.
In closing, I would like to once again register my sincere appreciation to everyone who is here today. The fruits of what we are embarking on as an industry will only be realized in days, months and years to come. With those few words, it is my pleasure to invite the Governor of Embu County, HE. Martin Wambora to make some remarks and declare the open Day officially open.