The Capital Markets Authority is an independent public agency established by an Act of Parliament, Cap 485 A under the Ministry of Finance. The Authority was inaugurated in 1990 but came into being in December 15, 1989 when the Act was passed. The CMA is therefore a regulating body charged with the prime responsibility of supervising, licensing and monitoring the activities of market intermediarie
s, including the stock exchange and the central depository and settlement system and all the other persons licensed under the Capital Markets Act. It plays a critical role in the economy by facilitating mobilization and allocation of capital resources to finance long term productive investments. What We Do
The Authority derives its powers to regulate and supervise the capital markets industry from the Capital Markets Act and the Regulations issued there under. The regulatory functions of the Authority as provided by the Act and the regulations include the following:
-Licensing and supervising all the capital market intermediaries
-Ensuring proper conduct of all licensed persons and market institutions.
-Regulating the issuance of the capital market products (bonds, shares etc )
-Promoting market development through research on new products and institutions.
-Promoting investor education and public awareness
-Protecting investors’ interest
Composition of the Board
The Board provides the overall policy direction and leadership to the Authority. Its commitment, professionalism, diversity of talent and experience and independence of mind are critical factors in the successful ex*****on of the mandate of the Authority. The primary responsibility of the board is the protection of the interest of investors, the government, employees, issuers of securities and the market intermediaries. A Chairman appointed by the President on the recommendation of the Minister of Finance;
2. Six other members appointed by the Minister;
3. The Principal Secretary of the National Treasury or a person deputed by him;
4. The Governor of the Central Bank of Kenya or a person deputed by him;
5. The Attorney General or a person deputed by him;
6. The Chief Executive of the Authority, who serves for a four-year term and is eligible for re-appointment for another four-year term. The chairman and the six members are persons who have experience and expertise in legal, financial, banking, accounting, economics or insurance matters, serve for a period of three years and are eligible for re-appointment for another three years. How We Regulate and Develop the Capital Markets
The Authority, led by the Board of Directors and supported by the Chief Executive together with the management, carries out its mandate of regulating and developing the Kenyan capital markets through a regulatory framework that is deliberately designed to meet this objective.
