CMA eyes FinTech innovators in new policy guide

The Capital Markets Authority (CMA) will formulate a policy on innovations in the financial technology (FinTech) as part of deepening technology use in the markets.

CMA chief executive Paul Muthaura on Wednesday said with Kenya being a global pace- setter in FinTech innovations, it will in the next quarter issue a consultative paper on the policy and guiding framework to support and nurture innovations.

This will be done under a “regulatory sandbox” model for market stakeholders.

“We are seeing a lot of global markets looking into Kenya to learn the lessons on how they can effectively leverage on mobile money and how to use the platform to raise capital for government debts,” he said.

Already, the authority has engaged other regulators and players in the FinTech space to benchmark on their strategy and approach.

“The ultimate aim is to support FinTech and foster innovation and participate in capital markets,” said Mr Muthaura during the launch of CMA first quarter markets soundness report in Nairobi.

He said this follows successful introduction of the mobile phone-based bond, M-Akiba, during the quarter after two years of testing.

The initial offer meant to run until April 10 that hit Sh150 million encountered a few teething problems.

The Treasury is to issue additional Sh4.85 billion June.

M-Akiba is aimed at easing access to government debt for all ordinary Kenyans, through an affordable minimum subscription of Sh3,000.

The sale rides on the mobile-phone penetration rate of 88 per cent.