Journey Towards Diaspora Investing In Kenya Eases As Licence Is Granted To A Kenyan Company By CMA

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Nairobi, 11 September 2020…The Capital Markets Authority (CMA) has granted a fund manager’s license to African Diaspora Asset Managers Limited. The fund manager will target Kenyan and African clients in the diaspora. In addition, it will adopt an ambitious pan-African investment strategy for diversification and return enhancement.

The fund manager will offer financial products and services in asset management, unit trusts, financial investment management, financial planning, wealth management, discretionary portfolio management, property development and private equity.

CMA Acting Chief Executive Mr. Wyckliffe Shamiah said, ‘The asset management sector is an important component of capital markets. This sector includes the management of funds owned by institutions such as pension funds and insurance companies, and the independent management of funds on behalf of retail investors, which can be distributed as collective investment schemes (or unit trusts).’ Some products offered by fund managers, for instance collective investment schemes, are important because they provide an opportunity for small investors to have access to professionally managed, diversified portfolios of assets.

African Diaspora Asset Managers Limited Chief Executive Officer Mr. Runyah Lewa noted that his firm is interested in collective investment scheme that will initially comprise of five funds, subject to the Capital Market Authority’s consent and subsequent registration. The proposed schemes are: – ADAM Money Market Fund, ADAM Fixed Income Fund, ADAM Equities Fund, ADAM Property Fund and ADAM Business Growth Fund. The latter will be a Private Equity Fund specifically seeking to provide debt and equity capital for SMEs in Kenya and Africa.

On his part the Kenya Investment Authority (KIA) Managing Director Dr. Moses Ikiara observed that domestic and diaspora investors were as important as foreign investors as Kenya seeks to grow Foreign Direct Investment (FDI). ‘We look forward to working closely with the Capital Markets Authority to achieve this goal’.

The approval brings the total number of licensed fund managers to 25.

ENDS

BACKROUND INFORMATION ON THE CAPITAL MARKETS AUTHORITY

The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence.

The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest. For more information, please contact: Antony Mwangi, Head of Corporate Communications on amwangi@cma.or.ke

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