CMA seeks to amend Statutory Act of 2013

By O’Brien Kimani

The Capital Markets Authority is seeking an amendment of the Statutory Act of 2013 to exempt it from the market guidelines and best practice clauses.

CMA acting Chief Executive Paul Muthaura says the requirements are hindering the implementation of key policies aimed at entrenching accountability and transparency in the management of the capital market in the country.

The Act that came into force last year requires parliament to approve any changes proposed by the authority and was seen as a major victory for stockbrokers against the market regulator.

Muthaura says that due to the heavy legislative agenda of parliament, some critical market reforms decision are likely to take longer to effect hampering market reforms.

He was speaking during the launch of the Capital Market Master Plan that envisions that by 2023, Kenya will be transformed into a market hub for domestic, regional and international investors.

The Capital Markets Authority which is mandated by law to supervise the local capital market has in the past voiced its concern over some sections of the statutory instruments act.

Both the NSE and CMA lobbied parliament’s departmental Committee on Finance, Planning and Trade earlier in the year regarding the proposed regulations however brokers carried the day to the consternation of the CMA.

Muthaura says that they are lobbying through the National Treasury to have some sections of the act repealed to give the authority powers to effect market guidelines and best practices without going through parliament.

The Capital Market Master Plan envisions that by 2023, Kenya will be transformed into the market choice for domestic, regional and international investors looking to invest in and realize their investments in Kenya.