This archive report was first published on 1 August 2019.
On 26 March 2019, the Capital Markets Authority (CMA) approved the entry of three Fintech firms into its regulatory sandbox, a move aimed at increasing financial innovation in the country.
The first entrants into the CMA's scheme are Innova Limited, Pezesha Africa Limited, and a third unnamed company. These firms will test their innovative solutions to challenges in the capital market.
According to the CMA, Innova Limited will test its cloud-based data analytics platforms, which are designed to guide fund managers, custodian banks, investors, and regulators. On the other hand, Pezesha Africa Limited will use the sandbox to test its digital crowd-lending platform, which allows investors to provide loan facilities like debentures to small and medium enterprises.
The regulatory sandbox provides companies with a platform to test innovations in a normal environment with minimum regulatory requirements. Upon completion of the test period, the CMA holds the discretion to grant a license or approval to participating companies, or offer permission to operate in Kenya subject to compliance with the terms of a letter of no objection.
“CMA targets to admit five firms to the Regulatory Sandbox by 2023”, said Mr Paul Muthaura, CMA’s Chief Executive.
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