Capital Market Authority Kenya – Everything You Need to Know


Capital Market Authority is a government agency in Kenya. This agency is part of the financial market, and it regulates the licensing and regulation of capital markets. In short terms, it brings together investors and borrowers of capital and governs their interactions. At the moment, the capital market authority Kenya has won the title the most innovative capital market regulator in Africa.

In this article, we will look at:

  • When was the capital market authority formed?
  • what does it exist to achieve?
  • Why it is considered as the most innovative capital market regulator in Africa

When was the Capital Market Authority formed?

This regulatory authority has been in existence since 1989 through an act of parliament. However, it was not until March 1990, when this body became inaugurated, therefore adopting a common seal and perpetual succession. Over the years, the capital market authority mission has evolved as its leadership changed. It’s vision today is always to be an innovative regulator of a globally competitive market.

What does the capital market authority exist to achieve?

The authority has many objectives. However, chief among those many include:

  • To make sure that Kenya has sound institutions, market infrastructure, and operation- through regulating the shares and stocks to trade at the Nairobi Stock Exchange.
  • Ensuring efficiency in capital markets through the use of technology.
  • Promoting diversification and development of capital markets.
  • Making sure that the capital markets authority operates at the best level of operational excellence.
  • Making sure that capital market policies are facilitative of development and efficient growth of the markets.
  • Act as a great strategic advisor to the direction that the capital markets are headed to.

Why it is considered as the most innovative capital market regulator in Africa

In Africa, the capital market authority Kenya is considered to be the most creative. This is due to several factors, such as:

  1. The authority is very keen to create the right environment that supports the adoption of financial technology. Recently it launched one of its kind tool known as a regulatory sandbox. The regulatory sandbox presents a platform for innovators to engage with the authority on a more open platform for discussion. As a result, offering the authority more creative solutions to approach product dissemination.
  2. Moreover, the authority has recently introduced the first real estate investment trust.
  3. Green bond has also been introduced in the country by this authority. This shows that the authority is continuously evolving as the global financial markets keep changing.
  4. Moreover, the capital market authority has also been able to launch financial derivatives as well as the futures markets.

If you have not yet invested in the Kenyan capital market, be assured that the authority is doing everything it can to make sure that you trade safely. Therefore there is no need to keep doubting, start trading today!

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