Most strategic and policy decisions are implemented through time phased projects that may cover reasonably long durations in their execution. The capital markets, which include but are not limited to the markets in equity and debt securities, play an important role in promoting economic activity. The capital market provides a conduit to mobilize and channel funds to enterprises, and provide an effective source of investment in the economy. Capital markets in Kenya include; Nairobi security exchange, Central Securities Depositories, investment banks, stockbrokers, investment advisers, fund managers, Collective investment schemes, authorized depositories/custodians, credit rating agencies and venture capital companies.
Capital markets in Kenya are regulated by capital markets authority (CMA). CMA is a statutory institution established in 1989 via an Act of Parliament with the prime responsibility of regulating and facilitating the development of orderly, fair and efficient capital. CMA in partnership with the capital markets has embarked on a long term strategic decisions covering capital markets aimed to promote the development of Kenya’s capital market to be an investment destination of choice through facilitative regulation and innovation. They have a good range of projects lined up for implementation to help realize the long term goals. These projects include, establishment of a legal and regulatory framework to govern capital markets, development and diversification of new