CMA in deal with the Abu Dhabi financial regulator

Outgoing CMA chief executive Paul Muthaura. FILE PHOTO | NMG 

By OTIATO GUYUYU

Abu Dhabi low-tax area authority has signed an agreement with Kenya’s Capital Market Authority (CMA) on sustainable finance.

Kenya is eyeing issuance of Green bonds and also targets the Sh5 billion black “Rhino Bond” by
Conservation Capital.

The opportunities have drawn the Financial Services Regulatory Authority (FSRA) regulator of Abu Dhabi Global Market (ADGM), a financial free zone within UAE.

“This strategic partnership underscores the importance of sustainable finance. This initiative has come at an opportune time as sustainable finance is expected to play an important but niche role in driving the growth of Kenya’s capital markets,” outgoing CMA chief executive Paul Muthaura said.

Philippe Richard, executive director-International Affairs of ADGM’s FSRA, said the MoU provides a framework for CMA and FSRA to exchange information pertinent to products, services and initiatives as well as to develop legislative, regulatory and institutional frameworks to enable the two sides to facilitate and support sustainable finance.

ADGM’s partnership and relationship with CMA began in 2017 on FinTech fostering innovation, financial inclusion and regulator cooperation.

Kenya has been targeting launch of a Green Bond by the end of the year through a consortium of banks under the Kenya Bankers Association while electricity generating company KenGen has also indicated interest. CMA launched a legal framework for the sustainable bond in February which included a verification process on the assets funded by the bonds.