Kenya’s capital markets are regulated by the Capital Markets Authority (CMA) under the Capital Markets Act (Cap 485A). The Nairobi Securities Exchange (NSE) is the principal market for trading listed securities.
Intermediary Licensing
Stockbrokers, investment advisors, fund managers, investment banks, custodians, and collective investment scheme operators must obtain a CMA licence. The framework specifies minimum capital requirements, fit and proper requirements for principals, and operational standards.
Public Offerings and Prospectus Requirements
Any person wishing to offer securities to the public must issue a CMA-approved prospectus. The Regulations prescribe the required information covering the issuer’s business, financial statements, risk factors, use of proceeds, and offering terms. Inaccurate or misleading prospectus statements give investors the right to rescind and claim damages.
NSE Listing Requirements
The Main Investment Market Segment (MIMS) requires minimum share capital, profit history, public float, and governance standards. The Growth Enterprise Market Segment (GEMS) has lighter requirements for smaller companies.
Continuing Obligations
Listed companies must immediately disclose material information affecting their securities price, file annual and quarterly reports, disclose related party transactions, and obtain shareholder approval for significant corporate actions. Insider trading and market manipulation are criminal offences.
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