Markets & Finance

CMA, counties start talks for project funding


Capital Markets Authority chief executive officer Paul Muthaura. PHOTO | SALATON NJAU

The Capital Markets Authority (CMA) is in discussions with county governments on how the devolved units can raise money for medium- and long-term funding.

CMA chief executive Paul Muthaura on Wednesday said the Constitution and Public Finance Management Act already set structures and requirement around the process of counties accessing borrowing or other capital initiatives.

“A CMA master plan implementation team has already developed an in-depth industry consultation document setting up a roadmap on how county governments could support project financing and implementation of key projects they are working on,” said Mr Muthaura.

He was speaking during one-day CMA roundtable on policy proposals for next financial year in Nairobi. The talks should result in guidelines for policymakers, Parliament and county governments on opportunities and how to leverage on the markets, he said.

CMA, under the master plan, targets that in 10 years, 30 per cent of county government financing will be drawn from the capital markets.

“We are going to move towards that direction. We are going to take very critical steps, create conducive environment, appropriate products and on top of that—understanding,” he said.

The authority has so far covered 41 out 47 counties.

The CMA has been educating county officials as well as business communities to help them understand the opportunities in the capital markets.