Boost To Kenya’s International Finance Aspirations As The CMA CEO Is Elected To IOSCO Board

Kenya's aspiration  for Nairobi to become an International Financial Centre received a major boost when Mr. Paul Muthaura, the acting CEO of the Capital Markets Authority (CMA), was elected to the Board of the International Organization of Securities Commissions (IOSCO). This will contribute to the global visibility of the Kenyan capital markets. It comes after the CMA in its 10 year master plan released this year indicated that it intends to abolish the country’s 75%  limit on foreign ownership of listed companies. An effort that is intended at improving foreign participation and liquidity at the NSE.

The CMA press release below provides more details.

IOSCO is the reference point for securities regulation and standard setting for the global capital markets regulatory community. It has a role in developing responses for the identification as well as mitigation of systemic and emerging risks across the financial sector globally through the Financial Stability Board (FSB) and G-20 process.

With his election to the Board, Mr. Muthaura will also take up a seat on the Growth and Emerging Markets Steering Committee (GEMC) which is charged with representing the interests of more than 75 percent of the membership of IOSCO. GEMC covers the most developed emerging markets including the Brazil, Russia, India, China & South Africa (BRICS). It also includes frontier and nascent capital markets. Kenya is considered a frontier market. The election was conducted during the GEMC meeting held in Rio de Janeiro, Brazil on September 29, 2014 and attracted candidates from CNV Argentina, FSC Mauritius, CMB Turkey, CMA Kenya and CDVM Morocco. CMB Turkey was also elected to the IOSCO Board.

His immediate priority is to add his voice to developing practical solutions at Board level to mitigate the unintended consequences of global regulatory reforms on emerging and frontier markets. Moreover he is to strengthen Africa's voice in the Financial Stability Board and G-20 work-streams relating to capital markets issues. Furthermore he will foster new approaches to capacity building through peer to peer programs by leveraging on the expertise within the membership.

Mr. Muthaura played a role in spearheading the  implementation of key reforms in the Kenyan capital markets. This includes finalizing the demutualization and self listing of the Nairobi Securities Exchange (NSE). Development of Kenya's first 10 Year Capital Markets Master Plan. As well as the roll out of a regulatory framework on the Derivatives markets. The Kenyan capital markets are at advanced stages of introducing new products such as Exchange Traded Funds (ETFs) and Real Estate Investment Trusts ( REITs)

During the meeting, the International Monetary Fund (IMF) was welcomed as a new member of the GEMC. Mr. Ranjit Singh, Chairman of the Malaysian Securities Commissions was elected Chairman of the Growth and Emerging Markets Committee  while Mr. Bert Chanetsa of FSB South Africa, was elected Vice Chairman.

The full press statement from the CMA can be read here. We wish Mr Muthaura all the best during his tenure in the board.

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