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Published by denis.machuhi, 2019-11-25 00:32:42



WHO WE ARE? Commented [DM1]: This was borrowed from the
strategic plan 2018-2023
The Capital Markets Authority (CMA) was established by an Act of Parliament Cap 485A in 1989 and
formerly inaugurated in 1990, with a dual mandate of regulating and facilitating the development of Commented [DM2]: This was borrowed from the old
orderly, fair and efficient capital markets in Kenya. This mandate was extended to include regulation of brochure
spot commodities markets through an amendment to the Capital Markets Act via the Finance Bill 2016.


The Authority derives its powers to regulate and supervise the capital markets industry from the Capital
Markets Act, the Central Depositories Act and the Regulations issued thereunder. The functions of the
Authority as provided by the Act and the regulations include the following;

• Licensing and supervising all the capital markets intermediaries

• Ensuring proper conduct of all licensed persons and market institutions.

• Regulating the issuance of the capital markets products (bonds, shares etc.)

• Promoting investor education and public awareness.

• Protecting investor interests.


Mission: To make Kenya’s capital market the premier choice for investors and issuers through robust
regulation, supporting innovation and enhanced investor protection.

Vision: To be an innovative regulator of a robust and globally competitive capital market.

Core Values: To fulfil its mandate and accomplish the above vision and mission, the Authority will be
guided by its core values of:

i. Integrity
ii. Commitment
iii. Responsiveness
iv. Innovation and Continuous learning; and
v. Collaboration and teamwork.

OUR OBJECTIVES Commented [DM3]: These were borrowed from the
strategic plan
The primary objectives of the Authority are:

i. Licensing and supervising all the capital market intermediaries;
ii. Ensuring proper conduct of all licensed persons and market institutions;
iii. Regulating the issuance of capital market products;
iv. Promoting market development through the creation of a conducive environment for

product innovation, supporting institutional capacity development and stimulating robust
market infrastructure;
v. Promoting investor education and public awareness;
vi. Protecting investors’ interest; and
vii. Develop a framework to facilitate the use of e-commerce

Our licensees: Commented [DM4]: Borrowed from the Annual report
2018. Can we do a graphic to represent these categories of
1. 5 approved institutions (Nairobi Securities Exchange; Central Depository and Settlement licensees?
Corporation Limited; Global Credit rating company; Agusto & Company Limited; Metropol
Corporation Limited) Commented [DM5]: This was borrowed from the existing
brochure. We can develop a graphic to represent this as was
2. 7 REIT managers the case in the previous brochure.
3. 27 Fund managers
4. 13 Investment banks
5. 3 REIT trustees
6. 13 Investment Advisors
7. 9 stockbrokers
8. 1 Real Estate Investment Trusts (REIT)
9. 14 Authorized depositories
10. 2 Authorized securities dealers
11. 22 Approved Collective Investment Schemes
12. 13 Approved Employee Share Ownership Plans (ESOPs)
13. 1 Exchange Traded Fund
14. 1 Non-Dealing Foreign Exchange broker.

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: Commented [DM6]: This introduction was borrowed
from the previous brochure.
The capital markets industry operates within certain regulatory framework which the players in this
industry must adhere to in the course of offering their services.

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:


i. The Capital Markets Act;
ii. The Central Depositories Act, 2000

Regulations and guidance

1. The Capital Markets (Securities Lending, Borrowing and Short-Selling) Regulations, 2017
2. Capital Markets (Online Foreign Exchange Trading) Regulations, 2017
3. CMA Collective Investment SchemesRegulations2001
4. The Capital Markets (Licensing Requirements) (General) Regulations 2002-Revised August

5. The Capital Markets (Take overs and Mergers) Regulations, 2002
6. Central Depositories (Operational) Rules, 2003
7. Capital Markets Registered Venture Capital Companies Regulations 2007
8. The Capital Markets _Foreign Investors_ Regulations 2002 - March 2008
9. Central Depositories _Regulation of Central Depositories_ Rules 2004 - March 2008
10. Capital Markets (Corporate Governance) (Market Intermediaries) Regulations 2011
11. Capital Markets (Conduct of Business) (Market Intermediaries) Regulations 2011
12. Capital Markets (Securities) (Public Offers Listing and Disclosures) Regulations 2002

Amended 2016
13. The Capital Markets _Demutualization of the Nairobi Securities Exchange Limited_

Regulations 2012
14. Capital_Markets_Real_Estate_InvestmentTrustsCollectiveInvestmentSchemesRegulations

15. The Capital Markets (Foreign Investors) Regulations with 2015 Amendments
16. The Capital Markets (Derivatives Markets) Regulations, 2015
17. Capital Markets NSE Limited Shareholding Regulations 2016


1. Guidelines on financial resource requirements for market intermediaries
2. Rating Agency Guidelines
3. Management Supervision Internal Control Guidelines May 2012

4. Guidelines on the Prevention of Money Laundering in the Capital Markets Commented [DM7]: These Acts, Regulations and
5. Code of Corporate Governance Practices for Issuers of Securities to the Public 2015 guidelines were borrowed from the Authority’s website.

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 our website: (Insert this as art) Commented [DM8]: These can be made into catchy
graphics within the e-brochure.
Disclaimer: This brochure is by no means a conclusive document. The Capital Markets Authority takes
no responsibility for any consequences arising from decisions taken based on the contents of this

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