Tag: Capital Markets Authority

  • CMA approves three new online financial service platforms

    CMA approves three new online financial service platforms

    The Capital Markets Authority (CMA) has granted approval to Safaricom Plc and Airtel Money Kenya Limited to operate as Intermediary Service Platform Providers (ISPPs).

    CMA also licensed CC Kenya Securities Limited (trading as Capital.com) to operate as a Dealing Online Foreign Exchange Broker.

    The licensing of both Safaricom Plc and Airtel Money Kenya Limited to operate as an Intermediary Service Platform Providers is expected to enhance competition, expand investor choice and strengthen digital access to regulated capital markets products.

    A dealing broker is authorized to act as a principal and market maker in online foreign exchange trading, including opening client accounts, providing trading platforms, offering market information, monitoring positions, and issuing end-of-day reports in line with the Capital Markets (Online Foreign Exchange Trading) Regulations, 2017.

    CMA has so far licensed thirteen non-dealing online forex brokers, two dealing online forex brokers and three money managers. These approvals underscore the continued growth and institutional interest in Kenya’s regulated online forex trading ecosystem.

  • Kirinyaga builds mega coffee warehouse to boost farmer earnings, direct sales

    Kirinyaga builds mega coffee warehouse to boost farmer earnings, direct sales

    The County Government of Kirinyaga is constructing a coffee storage warehouse to strengthen farmer’s capacity to directly market and sell their produce at the auction.

    The state-of-the art warehouse is expected to benefit over 120,000 coffee farmers in the county.

    The warehouse that is coming up at the Kirinyaga County Cooperative Union premises in Kimicha along Kutus-Kagio highway is expected to address post-harvest challenges and improve earnings for the farmers.

    It will have the capacity to hold up to 40,000 bags of parchment coffee that has been pulped, fermented and dried but not yet milled and will be fitted with modern features such as aeration cyclones to ensure quality preservation.

    Governor Anne Waiguru said the project is aligned to her administration’s vision to empower farmers increase earnings from production, value addition, processing and marketing in order to uplift their living standards. She noted that the union has been constrained in terms of coffee storage since their existing facility is unable to hold increasing volumes of coffee.

    Waiguru emphasized the broader vision behind the project. “Once complete, this warehouse will enable us to store and mill coffee from all over the county at our facility. My administration remains committed to making favorable policies that will strengthen coffee farming and ensure our farmers get value for their produce,” she said, noting that the efforts has paid off with Kirinyaga farmers getting the highest payoff in last season’s coffee where some cooperatives paid as high as Ksh.149 per kilo.

    Kirinyaga coffee farmers market their produce under the auspices of their union’s Kirinyaga Slopes Coffee Brokerage Company which works closely to the County Government to improve the entire coffee value chain from milling to marketing.

    The firm attained its brokerage status in 2023 after Governor Waiguru assisted in fast-tracking the issuance of its brokerage license at the Capital Markets Authority. The firm has since been one of the best performing at the Nairobi Coffee Exchange.

    Kirinyaga Slopes serves 14 cooperative societies across the county namely Mwirua, Kibirigwi, Inoi, Mutira, Kabare, Baragwi, Kanjuu, Mirichi, Rwama, Ngiriambu, New Ngariama, Rungeto, Thirikwa, and Karithathi all representing over 120,000 smallholder coffee farmers.

    Geoffrey Kinyua, Chairman of the Kirinyaga County Cooperative Union, said the county’s rapidly growing production had created a pressing need for additional storage space.

    “We produced around 42,000 tonnes of cherry last year and we expect to reach 60,000 tonnes soon which the old warehouse couldn’t handle.” he said.

    He noted that consolidating of Kirinyaga’s coffee through Kirinyaga Slopes has helped improve its visibility and value in the auction market. He noted that the upcoming warehouse is at 40pc completion and is expected to be completed by the end of the year.

    At the heart of the coffee transformation is a clearly structured processing system which Patrick Kahonge, Mill Manager at Kirinyaga Slopes says starts with the farmer delivering their red cherry at cooperative factories for pulping and fermenting after which the beans are sun or solar dried until they attain the required moisture content of 10 to 11 percent.

    The parchment coffee is then brought to the dry mill for grading based on quality. Once milled, clean coffee beans are dispatched to national marketing warehouses for distribution and sale.

    Kahonge said the new warehouse will fill a critical gap in the chain. “This warehouse measures 22 by 50 meters and is equipped to hold 40,000 bags of parchment coffee. The inclusion of cyclones ensures proper aeration, which is essential for maintaining coffee quality before milling,” he reiterated.

    With improved infrastructure, consolidated processing, and strong policy backing, Kirinyaga’s coffee farmers are expected to be more competitive in both local and international markets.

    The project is being implemented by the county government under the National Agricultural Value Chain Development Project whose goal is to transform smallholder farmers in the counties into commercial farmers by improving their value chains and market access.

    It invests in infrastructure, financial services and sustainable agricultural practices relying on community interest groups (CIG) and Farmers Producer Organizations (FPOs) to reach and empower farmers

     

  • CMA suspends Trade Sense license for 90 days

    CMA suspends Trade Sense license for 90 days

    The Capital Markets Authority (CMA) has announced the suspension of the Money Manager license issued to Trade Sense Limited for a period of ninety days for failure to comply with various regulatory requirements.

    The enforcement action underpins CMA’s mandate to protect investors and ensure the proper conduct of all licensed entities and capital markets institutions to maintain order and integrity in the capital markets.

    “The suspension is due to the failure by Trade Sense Limited to comply with various regulatory requirements which undermines the duty to protect investors and foster market confidence ’’, said the CMA Chief Executive Officer, Wyckliffe Shamiah.

    CMA has been engaging the management of Trade Sense Limited since 2023 to address various regulatory breaches that had been identified. The regulatory breaches include non-compliance with governance, financial, Anti-Money Laundering and operational requirements.

    According to Section 13 B (4) of the Capital Markets Act “the Authority may, where satisfied that the capital markets or an investor shall suffer irreparable damage as a result of an activity under subsection (1), impose an interim measure for not more than three months to prevent further damage pending completion of an inquiry”.

    During the 90-day suspension period, CMA will conduct a review to determine whether to lift the suspension or take further regulatory or enforcement action as may be necessary.

    A money manager is an entity licensed by CMA to engage in the business of managing the online foreign exchange portfolio of an individual or institutional investor in return for a fee based on a percentage of assets under management. However, a money manager is prohibited from receiving clients’ funds but only granted trading rights access to the funds deposited by the client directly to the client’s online trading account through the online foreign exchange broker.

  • CMA approves Ziidi Shariah Money Market Fund

    CMA approves Ziidi Shariah Money Market Fund

    The Capital Markets Authority (CMA) has granted approval to Gulfcap Investment Bank to register the Ziidi Shariah Money Market Fund.

    The fund is a Shariah-compliant investment product designed to cater to the growing demand for Islamic finance in Kenya.

    The Ziidi Shariah Money Market Fund will operate as a standalone fund with its own distinct incorporation documents and promoter. The fund will target registered M-PESA customers who either profess the Islamic faith or prefer to invest in Shariah-compliant financial products.

    This initiative aligns with the CMA’s efforts to promote inclusive and diverse investment opportunities within Kenya’s capital markets.

    With this approval, the number of licensed firms offering Shariah-compliant unit trust funds in Kenya now stands at seven, reflecting the increasing interest and growth potential of Islamic finance in the country.

    The CMA Chief Executive Officer, Wyckliffe Shamiah, while commenting on the approval, said, This marks a significant milestone in the ongoing efforts to promote Islamic finance within Kenya’s capital markets. We believe Islamic finance holds immense potential which can be unlocked through creating an enabling environment for such opportunities to thrive”.