Capital Markets Authority

Agency overview
Formed	March 7, 1990 (1990-03-07)
Type	Government agency
Jurisdiction	Republic of Kenya
Motto	Promoting the Integrity and the Growth of the Capital Markets
Agency executives	Mr. Ugas Sheikh Mohamed, Chairman of the Board of Directors. Wyckliffe M. Shamiah, Chief Executive Officer.
Parent department	Ministry of the National Treasury & Planning
Website	www.cma.or.ke

The Capital Markets Authority of Kenya (CMA) is a government financial regulatory entity responsible for supervising, licensing and monitoring the activities of the capital markets within the Republic of Kenya, market intermediaries, including the stock exchange, and the central depository and settlement system and all other persons licensed under the Capital Markets Act of Kenya.

The Capital Markets Authority regulates the capital markets sector by providing guidelines for corporate asset allocation. In the Capital Markets Act, guidelines for the amount of funds to be invested in each class of assets e.g. equities, government bonds and bills, are given in ranges.

The Capital Markets Authority is a body corporate with perpetual succession and a common seal and capable, in its corporate name, of:

• Suing and being sued;
• Taking, purchasing or otherwise acquiring, holding, charging and disposing of both movable and immovable property;
• Borrowing and lending money;
• Entering into contracts; and
• Doing or performing all such other things or acts necessary for the proper performance of its functions under the Capital Markets Act which may lawfully be done by a body corporate.

The main objectives of the CMA are stated to be:-

• the development of all aspects of capital markets with particular emphasis on the removal of impediments to, and the creation of incentives for longer-term investments in productive enterprises;
• to facilitate the existence of a nationwide system of stock market and brokerage services so as to enable wider participation of the general public in the stock market;
• the creation, maintenance and regulation of a market in which securities can be issued and traded in an orderly, fair and efficient manner, through the implementation of a system in which the market participants are self-regulatory to the maximum practicable extent;
• the protection of investor interests;
• the operation of a compensation fund to protect investors from financial loss arising from the failure of a licensed broker or dealer * to meet his contractual obligations; and
• the development of a framework to facilitate the use of electronic commerce for the development of capital markets in Kenya.

The Authority consists of -

• a chairman to be appointed by the President on the recommendation of the Minister;
• six other members appointed by the Minister;
• the Permanent Secretary to the Treasury or a person deputed by him in writing for the purposes of this Act;
• the Governor of the Central Bank of Kenya or a person deputed by him in writing for the purposes of this Act;
• the Attorney-General or a person deputed by him in writing for the purposes of this Act:
• the Chief Executive Officer of the Authority.

The current members of the Board are:

• Mr. Ugas Mohamed - Chairman
• Mr. Wyckliffe Shamiah - Chief Executive Officer
• Hon. Prof. Njuguna Ndung’u, CBS, Cabinet Secretary, National Treasury and Planning
• Mr. Musa Kathanje - Alternate to the Cabinet Secretary, National Treasury and Planning
• Hon. Justin Muturi, EGH, Attorney General
• Ms. Christine Kanini - Alternate to the Attorney General
• Dr. Kamau Thugge - Governor, Central Bank of Kenya
• Mr. David Luusa - Alternate to the Governor, Central Bank of Kenya
• Prof. Michael Bowen
• Mr. Nicholas Ngarua
• Ms. Elena Natalia Pellegrini
• Ms. Natasha Awuor Aduwo
• Ms. Hellen Ombati - Company Secretary

• Nairobi Stock Exchange
• List of financial regulatory authorities by jurisdiction

• Capital Markets Authority