CMA and KEPSA sign MoU to support MSMEs in uptake of capital market products
The Capital Markets Authority (CMA) has signed a Memorandum of Understanding (MoU) with the Kenya Private Sector Alliance (KEPSA) to support market deepening and leveraging capital market products to catalyse growth in line with the Big 4 Agenda and Sustainable Development Goals.
The MoU aims to ensure that many of the MSMEs affected by the COVID-19 Pandemic will discover their way to recovery and that they can access the capital market products, hence easing their burden of getting credible financing for their operations’
“This partnership is expected to promote Small and Medium-Sized Enterprises (SMEs) utilization of the capital markets to raise long-term capital in appreciation of the critical role of SMEs in the economy, and especially in facilitating economic recovery from the effects of the COVID-19 pandemic. One of the strategies adopted by CMA to support SMEs tap into the capital markets is a review and possible revision of the existing eligibility and disclosure requirements under the Capital Markets (Securities)(Public Offers Listing and Disclosures) Regulations 2002 regulatory framework to make it more responsive to emerging and evolving market needs.’ CMA Chief Executive, Mr Wyckliffe Shamiah.
The MoU will enable CMA and KEPSA to seek avenues for private and public sector finance and investment necessary to support Kenya’s economic growth and complement development funding gaps.
KEPSA and CMA have said they will develop a joint work plan to support the activities under the partnership. Some of the planned activities include:- joint quarterly fora to engage KEPSA members on capital market products and joint publications and research on financial markets to create financial quick reference materials to be distributed to critical stakeholders such as the youth, investment clubs and professionals.
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