Tough CMA terms for bond issuers

CMA CEO Wycliffe Shamiah

Capital Markets Authority (CMA) Chief Executive Officer Wycliffe Shamiah. 

Photo credit: File | Nation Media Group

Financially weak companies seeking to raise capital from the Kenyan corporate debt market must undergo mandatory credit rating and provide financial guarantees from recognised institutions such as banks and insurers.

The requirements are part of the latest legislative changes aimed at restoring investor confidence in the market battered by a string of defaults and corporate failures over the last 10 years.

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