This archive report was first published on 5 July 2021.
On July 5, 2021, the Capital Markets Authority (CMA) signed a Memorandum of Understanding (MoU) with the Kenya Private Sector Alliance (KEPSA) to support market deepening and leveraging capital market products to catalyse growth in line with the Big 4 Agenda and Sustainable Development Goals.
The partnership aims to promote Small and Medium-Sized Enterprises' (SMEs) utilization of the capital markets to raise long-term capital, in appreciation of the critical role of SMEs in the economy, especially in facilitating economic recovery from the effects of the Covid-19 pandemic.
According to the CMA Chief Executive, Mr. Wyckliffe Shamiah, the partnership is expected to promote SMEs' utilization of the capital markets to raise long-term capital. He noted that one of the strategies adopted by CMA to support SMEs tap into the capital markets is a review and possible revision of the existing eligibility and disclosure requirements under the Capital Markets (Securities)(Public Offers Listing and Disclosures) Regulations 2002 regulatory framework.
KEPSA Chief Executive Officer, Ms. Carole Kariuki Karuga, said that the partnership will go a long way in ensuring that many Kenyan businesses adversely affected by the Covid-19 pandemic discover their way to recovery. She added that the MoU compliments their series of trainings that they have been conducting on businesses, especially in accessing financing.
KEPSA and CMA will develop a joint workplan to support the activities under the partnership, including joint quarterly fora to engage KEPSA members on capital market products, and joint publications and research on financial markets to create financial quick reference materials to be distributed to critical stakeholders such as the youth, investment clubs and professionals.
