CMA Kenya

The Capital Markets Authority (CMA) is the chief regulatory authority responsible for supervising, licensing, and monitoring the capital markets industry in Kenya. Established in 1989, the CMA has played a critical role in ensuring the stability, transparency, and integrity of the country’s capital markets.

CMA Kenya History

The CMA was established in 1989 under the Capital Markets Act, Cap 485A, which sought to create a well-regulated and organized capital markets industry in Kenya. Over the years, the CMA has been instrumental in fostering a stable, transparent, and efficient capital market that promotes economic growth, investor protection, and market development in Kenya.

CMA Kenya Scope and Supervision

The CMA’s primary objective is to maintain the stability and integrity of the capital markets industry in Kenya. Its wide-ranging responsibilities include:

1. Licensing and regulating capital market intermediaries: The CMA oversees various capital market intermediaries, such as stockbrokers, investment advisors, and fund managers, ensuring they adhere to strict regulations and maintain market stability.
2. Supervising the capital markets: The CMA is responsible for regulating and supervising the capital markets in Kenya, ensuring proper disclosure, transparency, and fair trading practices.
3. Implementing anti-money laundering and counter-terrorism financing measures: The CMA enforces compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations to maintain the integrity of the capital markets.
4. Protecting consumers and investors: The CMA works to safeguard the interests of consumers and investors by enforcing regulations, promoting transparency, and raising awareness of potential risks.

CMA Kenya Investor Compensation Guarantees

The CMA has established the Investor Compensation Fund (ICF) to protect investors in the event of the collapse of a licensed stockbroker or dealer. The ICF offers compensation to investors who suffer financial losses due to the failure of a licensed intermediary to meet its obligations. The compensation limits are determined by the CMA, and the fund serves as a safety net for investors participating in the capital markets.

Organization Type

The CMA is an independent statutory body that operates under the jurisdiction of the National Treasury of Kenya. Its independent status allows the CMA to make impartial decisions in the best interest of the capital markets and investors. The CMA is governed by a board of directors, which is responsible for setting the strategic direction and ensuring effective oversight of the organization’s operations. The day-to-day operations of the CMA are managed by its Chief Executive, who is supported by a team of specialists and experts.