Browsing: CMA

• Kenya’s Capital Markets Authority will examine corporate governance reporting templates and assessment methods for all its issuers.
• This initiative ensures continued relevance in the financial landscape while enhancing accuracy to align with global standards.
• The industry watchdog is also exploring integrating sustainability into the listing requirements.

The Capital Markets Authority in Kenya is poised to conduct a comprehensive regulatory examination of corporate governance reporting templates and assessment methods for all its issuers. This initiative aims to ensure ongoing relevance in the financial landscape and enhance accuracy to align with global standards.

Details contained in the regulator’s latest report indicate that this exercise will promote transparency, accountability, and investor confidence in the capital markets sector. This came when the bourse recorded an overall improvement in corporate governance practices in the 2022/2023 financial year.

According to the CMA, during the review period, the annual weighted overall score by all issuers experienced …

• Despite increased market volatility compared to the previous quarter, the outflows remained relatively low, under one percent.
• To address liquidity challenges, the Capital Markets Authority plans to collaborate with key market stakeholders.
• Increase in interest returns from Government securities continues to shift investments away from the domestic equities market.

Foreign investors in Kenya cut their equity outflows in the capital markets by $87 million in the three months to June as the market showed signs of gradual recovery from the impact of high interest rates and global shocks.

In the quarter, foreign investors withdrew $10.5 million, a significant decrease compared to the $98 million net outflow seen in the first quarter. Despite increased market volatility compared to the previous quarter, the outflows remained relatively low, remaining below one percent.

In Kenya, there are still some risks associated with foreign investors’ flight, said Luke Ombara, the Director for Policy & Market …

The Guide mainly covers three key areas – understanding the asset class and where it sits alongside other asset classes, why and how to invest in PEs and an overview of the benefits and risks of investing in PE.

The development of the guide was informed by a market study report that sought to investigate the low uptake of investment by pension schemes.

In Kenya, for instance, PE allocations by pension schemes account for only 0.08 per cent of the total industry assets under management. From a regulatory perspective, there are provisions allowing pensions to invest in PE funds across East Africa (Kenya, Uganda, Rwanda, Tanzania, and Ethiopia).

According to Kenya’s pension regulator, the Retirements Benefits Authority (RBA), though the country has had regulations that provide for diversification of pension funds away from traditional instruments, most pension schemes are still predominantly bond and stock investors.…