The Capital Markets Authority of Kenya (CMA) is a government financial regulatory

entity An entity is something that Existence, exists as itself. It does not need to be of material existence. In particular, abstractions and legal fictions are usually regarded as entities. In general, there is also no presumption that an entity is Lif ...

responsible for supervising, licensing and monitoring the activities of the

capital markets A capital market is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold, in contrast to a money market where short-term debt is bought and sold. Capital markets channel the wealth of savers t ...

within the

Republic of Kenya Kenya, officially the Republic of Kenya, is a country located in East Africa. With an estimated population of more than 52.4 million as of mid-2024, Kenya is the 27th-most-populous country in the world and the 7th most populous in Africa. K ...

, market intermediaries, including the

stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for ...

, and the central depository and settlement system and all other persons licensed under the Capital Markets Act of Kenya. The Capital Markets Authority regulates the capital markets sector by providing guidelines for corporate asset allocation. In the Capital Markets Act, guidelines for the amount of funds to be invested in each class of assets e.g. equities, government bonds and bills, are given in ranges.

Establishment

The Capital Markets Authority is a

body corporate In law, a legal person is any person or legal entity that can do the things a human person is usually able to do in law – such as enter into contracts, sue and be sued, own property, and so on. The reason for the term "''legal'' person" is t ...

with

perpetual succession In company law, perpetual succession is the continuation of a corporation's or other organization's existence despite the death, bankruptcy, insanity, change in membership or an exit from the car of any owner or member, or any transfer of stock, e ...

and a common seal and capable, in its corporate name, of: * Suing and being sued; * Taking, purchasing or otherwise acquiring, holding, charging and disposing of both movable and immovable property; * Borrowing and lending money; * Entering into contracts; and * Doing or performing all such other things or acts necessary for the proper performance of its functions under the Capital Markets Act which may lawfully be done by a body corporate.

Objectives

The main objectives of the CMA are stated to be:- * the development of all aspects of capital markets with particular emphasis on the removal of impediments to, and the creation of incentives for longer-term investments in productive enterprises; * to facilitate the existence of a nationwide system of stock market and brokerage services so as to enable wider participation of the general public in the stock market; * the creation, maintenance and regulation of a market in which securities can be issued and traded in an orderly, fair and efficient manner, through the implementation of a system in which the market participants are self-regulatory to the maximum practicable extent; * the protection of investor interests; * the operation of a compensation fund to protect investors from financial loss arising from the failure of a licensed broker or dealer * to meet his contractual obligations; and * the development of a framework to facilitate the use of electronic commerce for the development of capital markets in Kenya.

Composition

The Authority consists of - * a chairman to be appointed by the President on the recommendation of the Minister; * six other members appointed by the Minister; * the Permanent Secretary to the Treasury or a person deputed by him in writing for the purposes of this Act; * the Governor of the Central Bank of Kenya or a person deputed by him in writing for the purposes of this Act; * the Attorney-General or a person deputed by him in writing for the purposes of this Act: * the Chief Executive Officer of the Authority.

Board

The current members of the Board are: *Mr. Ugas Mohamed -

Chairman The chair, also chairman, chairwoman, or chairperson, is the presiding officer of an organized group such as a board, committee, or deliberative assembly. The person holding the office, who is typically elected or appointed by members of the gro ...

*Mr. Wyckliffe Shamiah -

Chief Executive Officer A chief executive officer (CEO), also known as a chief executive or managing director, is the top-ranking corporate officer charged with the management of an organization, usually a company or a nonprofit organization. CEOs find roles in variou ...

*Hon. Prof. Njuguna Ndung’u, CBS, Cabinet Secretary, National Treasury and Planning *Mr. Musa Kathanje - Alternate to the Cabinet Secretary, National Treasury and Planning *Hon. Justin Muturi, EGH, Attorney General *Ms. Christine Kanini - Alternate to the Attorney General *Dr. Kamau Thugge - Governor,

Central Bank of Kenya The Central Bank of Kenya (CBK) () is the monetary authority of Kenya. Its head office is located in Nairobi. CBK was founded by in 1966 after the dissolution of East African Currency Board (EACB). Dr. Kamau Thugge, CBS is the current Governor a ...

*Mr. David Luusa - Alternate to the Governor, Central Bank of Kenya *Prof. Michael Bowen *Mr. Nicholas Ngarua *Ms. Elena Natalia Pellegrini *Ms. Natasha Awuor Aduwo *Ms. Hellen Ombati -

Company Secretary A Company secretary is a senior position in the corporate governance of organizations, playing a crucial role in ensuring adherence to statutory and regulatory requirements. This position is integral to the efficient functioning of corporations, ...

References

External links