The Capital Markets Authority has licensed Pezesha Africa as Kenya’s first crowdfunding platform after a successful 12-months testing period.
The debt-based crowdfunding platform that has been on a one-year testing period in the Regulatory Sandbox operated by CMA will allow firms and entrepreneurs to raise and collect funds from investors, contributors and donors.
The Capital Markets Authority granted a ‘No Objection’ letter to the start-up to operate its debt-based crowdfunding platform in the Kenyan capital markets as the firm now focuses on its quest to become the first Africa focused digital financial market place.
According to the regulator the fintech has successfully completed a one-year testing period in the regulatory Sandbox which was launched last year.
The ‘No Objection’ letter has been issued subject to Pezesha’s maintenance of existing compliance requirements including; an appropriate financial risk management framework, adequate local capital market transaction control procedures and efficient, orderly and fair operations of the business segment, product or intermediaries.
This is subject to the finalization of a Comprehensive Regulatory Framework to operate a Debt-Based Crowdfunding Platform in Kenya’ in the medium term.
CMA Acting Chief Executive Wycliffe Shamiah, said; ‘‘We are glad to note that Pezesha effectively tested its crowdfunding innovation and achieved its testing objectives and control boundaries between July 2019 and July 2020. This positive outcome is a clear demonstration of the unique opportunities arising from the sandbox environment and potential for scaling up innovative ideas. The success of Pezesha’s testing phase underlines the Authority recognition of the need to nurture innovations that can transform the fundraising model in the capital markets.”