CMA eyes six-month deadline for resolving listed companies probe

From left: Kenya Stockbrokers and Investment Bankers Association chairman Paul Mwai, Fund Managers Association of Kenya chairman Eistein Kihanda and Capital Markets Authority CEO Paul Muthaura at the launch of the strategic plan in Nairobi on July 18, 2018, PHOTO | DIANA NGILA  

The C

By PATRICK ALUSHULA

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Summary

• This will, among other things, increase confidence in the capital markets by ensuring quick resolution of governance issues.
• CMA chairman James Ndegwa called on the Treasury to help in enhancement of its powers in protection and promotion of investors’ interests.

apital Markets Authority (CMA) wants to bolster its investigative unit to help clear market conduct investigations within six months.

Chief executive Paul Muthaura said the 2018-2023 strategic plan unveiled on Tuesday aims to, among other things, increase confidence in the capital markets by ensuring quick resolution of governance issues.

“We will look to increase our own internal resources to make sure that the right team is available and work directly with the office of Director of Public Prosecution and other investigative units. This should reduce our investigation period to about six months,” he said.

The promise comes at a time confidence in the market has waned due to unresolved issues such as Chase and Imperial banks bond and Mumias Sugar mismanagement. The CMA also faces threat on its autonomy from piling litigations filed by various people affected by its previous enforcement actions.

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CMA chairman James Ndegwa called on the Treasury to help in enhancement of its powers in protection and promotion of investors’ interests.

“Enhanced autonomy will allow us to devote optimal resources to the successful implementation of strategic plan,” he said during the launch attended by Treasury secretary Henry Rotich.

However, Mr Rotich challenged the CMA to implement existing laws to the letter to curb corporate greed, even as he pledged reforms to address emerging trends such as digital products.

“To reap the full benefits of corporate governance, it is vital that the CMA strengthen enforcement of the guidelines to curb cases where listed companies take advantage of any loopholes in the guidelines,” he said