bann3

musa

Mr. Musa Kathanje was appointed to the Capital Markets Authority Board as the Alternate to the Cabinet Secretary, National Treasury and Planning (13th August 2018, and 17th July 2020 to date). He is currently the Director of Macro and Fiscal Affairs Department at the National Treasury. He joined the National Treasury in June 2013 as the Head of Macro Division in the Economic Affairs Department, on secondment from the Central Bank of Kenya where he was the Head of Monetary Policy Analysis Division. Mr. Kathanje served at the Central Bank of Kenya from June 1996 to June 2013 before he was seconded to the National Treasury. He has over 25 years of experience in macroeconomic policy formulation and analysis, fiscal policy, monetary policy formulation as well as regional economic integration policy gained from both the Central Bank of Kenya (June 1996 to June 2013) and at the National Treasury (June 2013 to date). He was appointed the Director of Macro and Fiscal Affairs Department in November 2016 by the Public Service Commission of Kenya.

Mr. Kathanje has attended various trainings by among others, the International Monetary Fund and its various regional training Centers; the United Nations Department of Economic and Social Affairs, the United States Federal Reserve Bank of New York, the Macroeconomic and Financial Management Institute of Eastern and Southern Africa (MEFMI) and the IMF East Afritac. He holds among others, a two-year certificate in macroeconomic modeling under the United Nations/African Research Network for Development Policy Analysis from the University of Pretoria, South Africa. He holds both Masters and Bachelor degrees (first class honours in Economics) from the University of Nairobi and is currently finalizing a PhD in Business Administration - Finance from Jomo Kenyatta University of Agriculture and Technology (JKUAT), Kenya. He holds a CPA Part I certificate.

Mr. Kathanje also currently represents the Principal Secretary, National Treasury at the Central Bank of Kenya, Monetary Policy Committee meetings (May 2017 to date) and is an Alternate to the Cabinet Secretary, National Treasury and Planning at the Vision 2030 Delivery Secretariat Board (4th September 2019 to date). He also represents the Principal Secretary at the National Development Implementation Technical Committee (NDITC) Programmes and Policies Sub-Committee (July 17th, 2019 to date). He has previously served as the Alternate to the Cabinet Secretary, National Treasury and Planning at the Konza Technopolis Board (14th October 2015 to September 30, 2019) and at the Kenya Institute of Public Policy Research and Analysis (KIPPRA) (14th October 2015 to August 19, 2019). 

REMARKS BY MR. PAUL MUTHAURA, ACTING CHIEF EXECUTIVE CAPITAL MARKETS AUTHORITY, DURING THE WORKSHOP ON EAST AFRICAN COMMUNITY COUNCIL DIRECTIVES ON CAPITAL MARKETS LEGAL AND REGULATORY FRAMEWORK MARCH 3RD 2015, CROWNE PLAZA, NAIROBI

  • The Principal Secretary, State Department of the East African Affairs, Ministry of EAC Commerce and Tourism
  • The Chief Executive of the Nairobi Stock Exchange, Mr. Geoffrey Odundo
  • Chief Executive of the Central Depository and Settlement Corporation, Ms. Rose Mambo
  • Board Members and Chief Executives of Listed Companies and Market Intermediaries
  • Distinguished Invited Guests
  • Ladies and Gentlemen:

All protocols observed:

  1. It gives me great pleasure to join you for this important workshop and extend to you all a very warm welcome on behalf of the Capital Markets Authority. We gather here to seek ways to remove the existing challenges between cross-border capital markets businesses as well as add impetus to regional integration agenda.
  2. Ladies and gentlemen: We are glad for your continued support as we seek to consolidate the capital markets within the region. The benefits of an expanded region to market issuers of securities include capacity to raise huge capital required for projects with vast capital outlay as well as projects extending beyond boundaries of Partner States. In respect of the market players, a single market provides ease of establishment and access across the entire region and thus minimizing the resources to set up business and expand.
  3. In the 2014-2015 Budget Statement, the Cabinet Secretary for the National Treasury indicated that in order to enhance efficiency and effectiveness of regulation and supervision of the financial sector institutions he will be tabling to the National Assembly the new Bills for the regulatory and supervisory aspects of the financial services sub-sector and the administrative Bill for the establishment of the Financial Services Authority. The Authority plans to carry out a review of the regulations, rules and guidelines issued under the Capital Markets Act once the new Bills are enacted. We have commenced our assessment of priority areas for review as evidenced by the recently concluded research on impact of regulations on market development. Therefore, we will take the opportunity once the Bills are enacted to review all the regulations to align them with the Bills and also ensure that the regulations are all compliant with these EAC Council Directives.
  4. I would like to acknowledge the support of the East African Community Secretariat in facilitating this workshop. The main objective of this workshop is to highlight the key provisions in the Council Directives to elicit feedback from our key stakeholders. However, we reiterate that in order to ensure that we produce quality legislation, kindly scrutinize the drafts and send us your comments before the end of the exposure period, which is 10th March 2015.
  5. Ladies and gentlemen: The workshop today provides an opportunity to discuss the further developed 8 additional Directives that are on public exposure until 10th March 2015. During this period we invite you to give us your feedback.
  6. The Directives on public exposure touch on various aspects of our operations. In particular:
  1. We held an assessment of the capital market regulatory framework in the EAC against the new IOSCO Principles in 2014 and one of the key finding was that the scope of regulated activities require to be defined. It is for this reason that a draft Directive on Regulated activities has been prepared.
  2. There are service providers who provide analysis of securities but they currently don’t seem to fall within the perimeter of regulation and it is in this regard that a Council Directive on Evaluative and Analytical Services has been prepared.
  3. In order to facilitate the implementation of the Council Directive on Regional Fixed income Securities a draft Council Directive on Credit Rating Agencies has been prepared as well. These are just some of the Council Directives that are going to be covered in today’s session.
  1. As I conclude my brief remarks, I wish to also indicate that the recently launched Capital Markets Master Plan will certainly move our Kenyan capital markets and economy to the next level. We really appreciate your invaluable input in the development of both the CMMP. We are in the process of establishing the Working Groups to guide the implementation of the CMMP. We will once again rely on your support.

With these few remarks, it is now my pleasure to invite the PS Ministry of EAC Commerce and Tourism to make his remarks and officially open this Workshop.

Thank you.

OPENING REMARKS BY MR PAUL MUTHAURA, AG. CHIEF EXECUTIVE, CAPITAL MARKETS AUTHORITY, DURING FORUM FOR THE BUSINESS COMMUNITY ON MARCH 27TH, 2015 AT THE IZAAK WALTON INN HOTEL

County Executive, Industrialization, Investment and Trade; 
Chairman, Kenya National Chamber of Commerce and Industry Embu Chapter;
Participating capital markets exhibitors;
Distinguished Guests;
Ladies and Gentlemen;
All protocols observed:

I am indeed very humbled to grace this important occasion. Allow me to take this early opportunity to thank you all for creating time out of your busy schedules to attend this important function. This is a clear demonstration of the importance you attach to further developing this county of Embu.

Ladies and Gentlemen; Investor education forums such as the one we are having today will 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 capital markets industry and the economy at large in Embu County and beyond.

Ladies and Gentlemen; The Authority uses a multi-faced approach to its investor education program targeting various constituents such as youth groups, structured forums and potential issuers. Further, we are also in discussions with the County Governments to create a securitized instrument derived from their current receivables within the capital markets that enables them to raise long term funds through the public. The forum today is specific to the business community of Embu County and how one can benefit within the capital markets.

Ladies and Gentlemen; while small businesses may not generate as much income as compared to large corporations, they are a critical component of any major contributor to the strength of our nation. Small businesses present new employment opportunities and serve as the building block of Kenya’s' largest corporations. Small businesses contribute to local economies by bringing growth and innovation to the community in which the business is established. Small businesses also help stimulate economic growth by providing employment opportunities to people who may not be employable by larger corporations. Small businesses tend to attract talent who invent new products or implement new solutions for existing ideas. Larger businesses also often benefit from small businesses within the same local community, as many large corporations depend on small businesses for the completion of various business functions through outsourcing.
Ladies and Gentlemen, in Kenya, The Small and Medium Sized Enterprises sectors is one of the key drivers of Vision 2030, destined to play an effective role as an engine for economic growth, poverty eradication and unemployment. According to latest data published by the Institute of Economic Affairs, SMEs are the main source of economic growth in developed and developing countries such as Kenya and are responsible for about 77% of employment and contributes about 35-50% of GDP. 
Cognizance to the critical role played by SMES the Authority in conjunction with the Nairobi Securities Exchange (NSE) and the Central Depository and Settlement Corporation (CDSC) jointly embarked on the establishment of a venture capital and Small and Medium Sized Enterprises (SME) market at the Nairobi Securities Exchange (NSE), which was launched on January 22, 2013 called the Growth Enterprise Market Segment (GEMS). The GEMS market currently has four listed companies and is expected to increase further. You will receive more information regarding this segment in the presentations that have been prepared for you.

Ladies and Gentlemen; the information in today’s forum has been packaged to allow you to receive information on being an investor as well as being an issuer in the capital markets. I am confident that the team will be able to demystify some of the critical aspects of capital markets. Although the Authority has several flagship initiatives that are currently ongoing, I would like to highlight three areas of importance:

a) Given that Saccos have a significant presence in Embu County, you will be glad to note that the Authority is in discussions with stakeholders on the implementation Over the Counter (OTC) platform where SACCOs shareholders in particular can trade their shares in more efficient manner. This platform is contrasted with exchange trading, in that it occurs over the counter or across the table as opposed to an exchange which is an auction. In an OTC environment training can be among friend or people who know each other while through an exchange the seller doesn’t not necessarily know the buyer. The price of the trade under OTC is also not necessarily published for the public.

b) Secondly, 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.

c) Thirdly, 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 addition to the forum today, I hope you will find time to attend the Capital Markets Open Day at Moi Stadium to receive one-on-one first-hand information regarding investments within the capital markets as well as opportunities to raise capital to fund long term infrastructure projects. The Open Day is running at this very moment and will end at 5pm tomorrow.

Ladies and Gentlemen, in closing, I would like to thank the Kenya National Chamber of Commerce Embu Chapter as well as the County Government for partnering with us in putting this forum together. I wish you all fruitful discussions.


Thank you

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;
Distinguished Guests;
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.

Thank you.

WELCOME REMARKS BY MR. PAUL MUTHAURA, AG. CHIEF EXECUTIVE, CAPITAL MARKETS AUTHORITY, DURING THE OFFICIAL OPENING OF THE THIRD ANNUAL CAPITAL MARKETS OPEN DAY AT THE KICC ON THURSDAY MAY 7TH, 2015


Cabinet Secretary to the National Treasury, Mr Henry Rotich;
Chairman of the Capital Markets Authority, Mr. James Ndegwa;
Board members from the Capital Markets Authority present;
Board members and the Chief Executive of the Nairobi Securities Exchange; 
Board members and the Chief Executive of the Central Depository and Settlement Corporation;
Chief Executives and representatives of Capital Markets intermediaries; 
Participating Capital Markets Exhibitors;
Members of the fourth Estate;
Distinguished Guests;
Ladies and Gentlemen;
All protocols observed:

Good morning.

On behalf of the Authority, I’d like to welcome you all to our third Annual Open Day. We are delighted to have organized this event once again, and indeed to have your presence here today.

Cognizant of your busy schedules and commitments, on behalf of the Authority, I express our sincere gratitude for the consistent support you have accorded our investor education and public awareness initiatives over the last few years. We are also grateful and honored that the Cabinet Secretary to the National Treasury, Mr. Henry Rotich, took time out his busy schedule to be with us today.

Allow me to also recognize our new Chairman, Mr. James Ndegwa, and the new appointees to the Board of the Authority Ms. Linda Muriuki and Dr. Chris Kiptoo who will no doubt enrich the depth and drive of the Board of the Authority.

Ladies and Gentlemen: The Authority is convinced that financial literacy and empowerment help to inculcate individuals with the financial knowledge necessary to make strategic investment decisions and avoid the pitfalls associated with poor debt and savings management for their futures. In this context, one of our core mandates as a regulator is Investor Education and Public Awareness.

The Authority firmly believes that the best defense for investors against both market fluctuations and victimization by market misfeasance is an educated investor. That is, an investor who understands the importance of diversification, the trade-off between risk and return, and who appreciates that, if an opportunity sounds too good to be true, it likely is.

We are therefore working to elevate investor education to the next level; where the public recognize not just opportunities, but warning signs; a level where investors act not just on instinct or rumours, but on the basis of solid information. It is in this regard that we organize events such as this Open Day where current and potential investors interact with the market players and receive pertinent information on wealth creation through the capital markets.

Ladies and gentlemen, as I indicated earlier, this is our third annual Open Day. The journey towards this event has been built on ever deepening consultations with stakeholders. The inaugural Open Day was held here at KICC in June of 2013. Over 30 exhibitors participated over the 3 days and approximately 3,000 members of the public visited the Open Day.

In 2014, the second Open day was held in March where forty exhibitors availed themselves for engagement and approximately 5,000 members of the public took up the opportunity to expand their knowledge base. The growing level of participation serves to highlight the considerable increase in interest in the capital markets in the country. It is this regard that we anticipate an even bigger and better turn out over the next 3 days.

I am pleased to inform you that in an effort to make the Open Day even more robust, this time round we have included several themed conferences which will run in parallel during the Open Day through to Saturday. Our goal for the conferences is to provide an opportunity for intermediaries, stakeholders, retail and institutional investors and potential issuers, to share their insights and engage in interactive discussions.

The themed conferences will be examining a range of topics of interest through a combination of key note presentations and panel discussions presided over by distinguished industry practitioners. These topics include: The Role of Capital Markets in Funding Vision 2030 Projects, On-going Developments in the Capital Markets, Capital Markets Products and Investing in the Capital Markets and a Stakeholder Consultative conference.

This approach stems from the understanding that the Open Day is not about the Authority but about bringing the capital markets to Kenyans.

Ladies and Gentlemen; This Open Day is part of a multi-faceted approach to our investor education awareness campaign. Our goal, is to reach out to investors wherever they are, ensuring that they have the information and background they need to make informed investment decisions.

We have adopted an evidence-based approach to identifying and addressing the financial education needs of Kenyans. This approach is informed by among other elements the Capital Markets Investor Profile Study we conducted last year as well as observations and feedback from forums we have undertaken in the past. The main thematic strategic areas arising therefrom include County Outreach, Structured Investment Group Forums, Youth outreach programs, National campaigns and outsourcing education programs to Resource Persons.

In this context I would like to highlight a number of key initiatives we are currently pursuing as part of this process.

  • To begin with; we are in the process of finalizing the recruitment of “Education outsourcing Resource persons” following public advertisements for expressions of interest which closed on April 7th, 2015. The initiative is an exciting opportunity for individuals with appropriate competencies to conduct investor education speaking engagements designed by the Authority across the counties. The main objective of this initiative is to increase awareness and participation in the capital markets by effectively engaging the various constituents throughout the country.
  • Secondly, the Authority has signed a Memorandum of Understanding (MOU) with the Chartered Institute for Securities & Investment (CISI) (the financial sector examinations provider for the City of London) for the introduction of international certification standards in the capital markets industry in Kenya and hopefully the EAC. I am pleased to announce that based on the progress CISI on the development of the syllabus with a view to roll-out later in the year. This certification programme will ensure that practitioners in the capital markets industry have the requisite skills, operate with high standards and apply best practice as Kenya takes its position as the heart of African capital markets on the road to recognition as a competitive International Financial Centre
  • In addition; given that we cannot prosper as a nation economically unless there is integrity as well as confidence in our markets, the Authority, through the industry based Capital Markets Corporate Governance Steering Committee has finalized a Corporate Governance Code that is awaiting enactment. This Code is the product of extensive engagement and rigorous input fromkey stakeholders and global corporate governance experts. This Code is expected to further empower the Authority to play our pivotal role in enhancing transparency and accountability in our markets to ensure we become a true investment destination of choice on the continent.

All this, I hasten to add, is informed by the Capital Markets Master Plan, which charts the strategic positioning and future direction of the Kenyan capital markets over the next 10 years. I am pleased to inform you that the various Capital Markets Master Plan Working Groups have already hit the ground running under the guidance of the Implementation Committee to ensure the aspirations of the plan come to fruition.

Ladies and Gentlemen: Following each event of this nature, we ask participants for their feedback and suggestions for future events. We have received consistently positive feedback about previous Open Days which continue to inform further improvement. We will therefore again be looking to engage attendees in some interesting and interactive panel discussions. Your views are important to us and are taken into account in developing our agenda.

In closing. I would like to register my appreciation to all the intermediaries, stakeholders, and my team, for their concerted efforts in making this event possible. I am confident that this partnership will continue as we embark on serval planned initiatives in future. The fruits of what we are embarking on as an industry will trully be realized in days, months and years to come. Once again let me welcome everyone to the Capital Markets Open Day 2015. I wish you all a rewarding experience.

With those few remarks, it is my pleasure to invite the Authority’s Chairman, Mr. James Ndegwa to make his remarks and invite the Cabinet Secretary to Officially Open this Open Day event.

Thank you.

approvalservice
certificationannual
toolkit1financial
gficonlodge
masterwhistle
  

Copyright © 2021 Capital Markets Authority. All Rights Reserved.
Joomla! is Free Software released under the GNU General Public License.

kebsISO1