Functions Of Capital Market Authority

The Capital Markets Authority (CMA) plays a crucial role in regulating and developing Kenya’s capital markets. Established in 1989 under the Capital Markets Authority Act, the CMA aims to promote capital formation, protect investors’ interests, and maintain market integrity by ensuring that the capital markets operate in a transparent, fair, and efficient manner.

The CMA is responsible for licensing and regulating market intermediaries, approving public offerings of securities, promoting investor education, monitoring compliance with securities laws and regulations, and providing oversight of the trading and settlement systems in the capital markets, among other functions. In this article, we will provide an overview of the Capital Markets Authority in Kenya, including its functions, leadership, and contact information.

Functions of Capital Market Authority in Kenya

The Capital Markets Authority (CMA) in Kenya performs a variety of functions aimed at promoting and regulating the development of the capital markets in the country. Some of its key functions include:

1. Licensing and regulating market intermediaries: The CMA is responsible for licensing and regulating market intermediaries such as stockbrokers, investment banks, and fund managers. It ensures that these intermediaries meet the necessary requirements, follow proper conduct, and comply with securities laws and regulations.
2. Approving public offerings of securities: The CMA approves public offerings of securities such as stocks and bonds. It evaluates the issuers’ disclosure documents and ensures that they comply with the necessary requirements.
3. Promoting investor education: The CMA promotes investor education to help investors understand the capital markets and make informed investment decisions. It provides training programs, publications, and other educational resources to the public.
4. Monitoring compliance: The CMA monitors compliance with securities laws and regulations. It investigates and takes enforcement action against any violations, including insider trading, market manipulation, and other fraudulent activities.
5. Developing and enforcing codes of conduct: The CMA develops and enforces codes of conduct for market intermediaries. These codes promote ethical behavior, good corporate governance, and best practices in the capital markets.
6. Providing oversight of trading and settlement systems: The CMA provides oversight of the trading and settlement systems in the capital markets. It ensures that these systems operate in a fair, efficient, and transparent manner.
7. Promoting capital formation: The CMA promotes capital formation by creating an environment that encourages the flow of savings and investments into the capital markets. It helps to mobilize capital from both domestic and international investors, which can be used to finance infrastructure projects, business expansion, and other economic activities.
8. Developing new products: The CMA develops new products, such as Exchange-Traded Funds (ETFs) and Real Estate Investment Trusts (REITs), to provide investors with more investment options and to increase market depth and liquidity.
9. Improving corporate governance: The CMA works to improve corporate governance practices among listed companies. It promotes transparency in financial reporting, enhances shareholder rights, and encourages board independence and accountability.

Capital Market Authority in Kenya Leadership

The Capital Markets Authority (CMA) in Kenya is led by a Board of Directors, which provides strategic direction and oversight to the organization. The Board is composed of a Chairperson, a Deputy Chairperson, and up to nine other members.

The CMA is also led by a Chief Executive Officer (CEO), who is responsible for the day-to-day management of the organization. The CEO is appointed by the Board and reports to the Board on the performance of the CMA.

The current Chairperson of the CMA Board is Ugas S. Mohamed. The CEO of the CMA is Wyckliffe Shamiah.

Capital Market Authority Vision

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

Capital Market Authority Mission

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

Capital Market Authority Core Values

To fulfill its mandate, pursue the Vision and accomplish its Mission the CMA is guided by its core values of:

i) Integrity – Commitment to acting at all times with honesty, fairness, accountability, transparency, ethically and above board in all our operations;

ii) Commitment – Commitment to perform its duties with the highest level of professionalism, dedication with a view to exceeding the expectations of their clients and stakeholders;

iii) Responsiveness – They are sensitive to and will deal with issues and situations affecting all stakeholders in proactive and timely manner, using flexible decision making processes;

iv) Innovation and Continuous learning – Commitment to facilitating continuous learning and innovation; and

v) Collaboration and Teamwork – Commitment to teamwork within the Authority and collaboration with partners in the provisions of services.

Capital Market Authority in Kenya Contacts

The Chief Executive

Capital Markets Authority

Embankment Plaza, 3rd Floor

Longonot Road, off Kilimanjaro Avenue, Upperhill

P.O Box 74800 – 00200 Nairobi, Kenya

Tel: +254 20 2264000/ 2264900 / 2221869

Cell: +254 722 207767

Email: corporate@cma.or.ke

Website: www.cma.or.ke

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