Functions of Capital Markets Authority in Kenya

These are the functions of the Capital Markets Authority in Kenya. It is a statutory agency under The National Treasury and Planning ministry that was established in 1989. The agency is tasked with regulating and developing an orderly, fair and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. Its head office is located at the Embankment Plaza along Longonot Road in Upper Hill, Nairobi.

Functions of the Capital Markets Authority in Kenya

1. It licenses and supervises all the capital market intermediaries i.e securities exchanges, central depositories, investment banks, stockbrokers, dealers, investment advisers,  fund managers, authorized securities dealers, authorized depositories (custodians), credit rating agencies and venture capital companies.

2. It ensures proper conduct of all the licensed market players.

3. It implements policies and programmes of the Government with respect to the capital markets.

4. It ensures compliance with the legal and regulatory framework by all market participants.

5. It imposes sanctions for non-compliance with the Authority’s requirements.

6. It grants approval to operate a securities exchange, derivatives exchange, credit rating agency, and a  venture capital company.

7. It regulates spot commodity markets.

8. It conducts inspection of the activities, books and records of any persons approved or licensed by the Authority.

9. It regulates the issuance of the capital market products such as bonds, shares etc.

10. It promotes market development through research on new products and institutions.

11. It protects investors’ interest. For instance, the authority grants compensation to any investor who suffers a pecuniary loss resulting from the failure of a licensed broker or dealer to meet his contractual obligations.

12. It regulates and oversees the issue and subsequent trading, both in primary and secondary markets, of capital market instruments.

13. It promotes investor education and public awareness.

14. It reviews the legal framework to respond to market dynamics.

15. It issues guidelines and notices on all matters within the capital markets.

16. It regulates the use of electronic commerce for dealing in securities or offer services ordinarily carried out by licensed persons.

Capital Markets Authority of Kenya Contacts

Location: Embankment Plaza, 3rd Floor, Longonot Road, off Kilimanjaro Avenue, Upperhill.

Phone: +254 20 2264400, 0722 207767

Victor Matara

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