Kenya plans to put in place reforms to attract foreign capital inflows, an official said on Wednesday.
Capital Markets Authority (CMA) CEO Paul Muthaura told a regional financial forum in Nairobi that Kenya is yet to attract substantial offshore funds despite the high returns available, lower risk sovereign debt and huge infrastructure funding needs.
“We shall implement appropriate local policy and regulatory reforms that will address the real or perceived risks of investing in the financial markets,” Muthaura said.
“Therefore, we are seeking to proactively respond to the expectations of both local and international investors to seize the opportunity and take advantage of Kenya’s dynamic markets that present above-average opportunities for investment growth,” he said during the launch of the release of the Africa Financial Market Index (AFMI 2017).
Muthaura said the reforms will ensure access to reliable and robust information from the capital markets.
He said depressed returns in developed markets are driving a significant resurgence in interest in emerging markets such as Kenya.
The CEO said yield demands as well as investment flow levels are heavily influenced by the perception of risk and the de-risking pressures arising from regulatory reform.
The East African nation’s Capital Markets Master Plan envisions that its capital markets will in the next ten years become sufficiently deep and dynamic to stimulate domestic development, while providing a gateway to Middle Africa for regional and international capital flows.
The capital market regulator hopes that by 2023, Kenya will have been transformed into a choice market for domestic, regional and international issuers and investors. Enditem