Capital markets regulator, banks in financial innovation deal

The Capital Markets Authority (CMA) and Kenya Bankers Association (KBA) said they had formed a partnership to promote financial sector innovation through research and policy initiatives.

The move allows the two organisations to collaborate in the areas of research, data sharing, analysis, and stakeholder engagement.

Paul Muthaura, the CMA chief executive, said the signing of the Memorandum of Understanding (MoU) with the KBA is aligned to the CMA Strategic Plan, 2018-2023, under its objective on enhancing strategic influence.

“This encapsulates several key initiatives, including the need to engage with stakeholders to ensure deepening of the market and to build strategic alliances with domestic and international partners, said Mr Muthaura.

KBA chief executive Habil Olaka said in keeping with the MoU, the banking industry and CMA will embrace a collaborative approach on research and policy outputs in a bid to ensure stakeholder involvement prior to development of policy and regulation frameworks.

“For years KBA has been the preeminent source of banking industry research and the association has led discourse on policy matters. Through this partnership we will be able to leverage our expertise and resources to contribute to broader financial sector growth, anchored on the development of our capital markets,” said Mr Olaka.

The collaboration is also expected to explore opportunities for stimulating activities in the banking industry and capital markets through financial technology (fintech) innovation as the two organisations seek to deepen financial inclusion and further sustainable economic development.

The two organisations will also strive to steer ahead initiatives within the bond market including strengthening netting and collateralised transaction frameworks, green financing and operationalising bond market infrastructure and products.

The collaboration is further expected to address the low uptake of capital markets products and services.