Weak brokers face stricter checks in new CMA measures

All CMA licensees published their half-year financial statements for the first time in October last year in compliance with new requirements that are supposed to provide investors with reliable information when choosing their market intermediaries.

“The collapse of some intermediaries in the past is evidence of inefficient market supervision which was mainly centred on administrative issues and it therefore makes sense to review the old approach,” said a market player on condition of anonymity for fear of reprisals from the regulator.

She said the process of transferring the Nairobi Stock Exchange (NSE’s) ownership to third parties (demutualisation) as a way of enforcing adherence to trading rules is at an advanced stage. “The Demutualisation Bill is ready, we are just waiting for necessary approvals (by the attorney general) before publication,” said Ms Kilonzo.