The Capital Markets Authority of Kenya, also known as CMA, is a government financial regulatory

entity An entity is something that exists as itself, as a subject or as an object, actually or potentially, concretely or abstractly, physically or not. It need not be of material existence. In particular, abstractions and legal fictions are usually r ...

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 ) , national_anthem = " Ee Mungu Nguvu Yetu"() , image_map = , map_caption = , image_map2 = , capital = Nairobi , coordinates = , largest_city = Nairobi , ...

, 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 th ...

, 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 'thing' (less ambiguously, any legal entity) that can do the things a human person is usually able to do in law – such as enter into contracts, lawsuit, sue and be sued, ownership, own property, and so o ...

with perpetual succession 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.

Management

The current members of the Board of Directors are: *Mr. Nicholas A. Nesbitt (EBS), (OGW) - Chairman *Mr. Wyckliffe M. Shamiah -

Chief Executive Officer A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especial ...

*Hon. (Amb.) Ukur Yatani (EGH) - Cabinet Secretary, The National Treasury and Planning *Mr. Musa Kathanje - Alternate to the Cabinet Secretary, The National Treasury and Planning *

Paul Kihara Kariuki Paul Kihara Kariuki is a Kenyan lawyer and a former court of appeal president and judge. He was nominated for the post of Office of Attorney General of Kenya by President Uhuru Kenyatta on 13 February 2018 following the resignation of Githu Muigai ...

Attorney General In most common law jurisdictions, the attorney general or attorney-general (sometimes abbreviated AG or Atty.-Gen) is the main legal advisor to the government. The plural is attorneys general. In some jurisdictions, attorneys general also have exec ...

*Ms. Christine Kanini - Alternate to the Attorney General *Dr.

Patrick Ngugi Njoroge Patrick Ngugi Njoroge is a Kenyan economist, banker and the ninth governor of the Central Bank of Kenya. Background and education Njoroge was born in Kakuma, Kenya, . His father was an official in the education department and his mother was a t ...

- Governor,

Central Bank of Kenya The Central Bank of Kenya (CBK) ( sw, Banki Kuu ya Kenya) 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. Patrick Ngugi Njoroge ...

*Mr. David Luusa - Alternate to the Governor, Central Bank of Kenya *Mr. John K. Birech *Mr. Eli Mwangi *Ms. Hellen Ombati - Company Secretary

References

External links