In August, Kenya went to the polls to elect its fifth President marking end of the political season. After the votes were counted, including those at the Supreme Court, our fifth President was sworn in. The largely seamless polls were a key milestone in the Kenyan quest for democracy and leadership by the people for the people. Kenya is relatively young democracy and the impact of our choice of leaders to our economic fortunes is significant.
Shifting gears, the Queen is dead. Long live the King. The British know how to put on a good show, the ascension of King Charles III and Privy Council proceedings were intriguing. Many Commonwealth legal practitioners recognize the Privy Council from case law, and may have found the proceedings interesting to watch. The changes of guard locally and in Britain should make good fodder for students of governance and institutional operations. Keen eyes may have noted the King’s first order of business was naming his heir apparent. No better reminder of the importance of succession planning in matters governance.
As we noted in our Q3 Issue, the state of the global and Kenyan economies remains in question. In this Issue, we focus on the Kenyan capital markets which are a key subset of our economy. President Ruto’s commitments to revitalize and support the capital market, and spur increased listing are welcome policy directions. Policy signals also indicate stronger monitoring of stakeholders in our capital markets. The Capital Markets Authority is spearheading this with proposals made this last quarter to amend and update the regulatory framework.
These particularly welcome moves will go a long way to develop and deepen our capital markets. We are therefore happy to highlight specific items affecting the Kenyan capital markets for your reading. We discuss changes to the rules on public offers, listing, and collective investment schemes. We reflect on the REITs journey as the relevant regulations turn 10 year this coming year. There must be way of improving uptake of Real Estate Investment Trusts in a country which loves collective investments and real estate.
Qwasha, which recently launched its website, speaks on Environmental Social and Governance (ESG) matters. This is a new compliance focus area for corporates, both for regulatory and investor attraction considerations. The Nairobi Securities Exchange has issued ESG Reporting Guidelines to guide listed companies.
As we usher the last quarter of what feels like a whirlwind year, I appreciate a new dawn for Kenya under a new administration. Maybe, just maybe we are witnessing a renaissance of the Kenyan capital markets in the offing. I hope this Issue provides useful insights.
Best,
Mugambi Maingi
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DISCLAIMER:
This briefing is a highlight of legislative and policy changes and is intended to be of general use only. It is not intended to create an advocate-client relationship between the sender and the receiver. It does not constitute legal advice or a legal opinion. You should not act or rely on any information contained in this legal update without first seeking the advice of an advocate.
