CMA and KEPSA’s Deal to Help SMEs access Capital

Capital Markets Authority and Kenya Private Sector Alliance have entered into a partnership to enable Small Business Entreprises to get access to capital markets products. 


According to KEPSA’s Chief Executive Officer Carole Kariuki Karuga, as a result the SMEs will have an easier time obtaining reliable financing for their operations.

CMA and KEPSA will seek public and private financing and investment to help Kenya’s economy grow and fill development funding shortfalls.

The two institutions will also work together on policy and regulatory initiatives to establish a favorable business environment that will promote a strong, resilient, and inclusive financial sector through capital market growth.

According to CMA Chief Executive Wyckliffe Shamiah, the partnership is expected to promote Small and Medium-Sized Enterprises’ (SMEs) use of the capital markets to raise long-term capital. This is in recognition of SMEs’ critical role in the economy, particularly in facilitating economic recovery from the effects of the Covid-19 pandemic

By revisiting its onerous qualifying and disclosure rules, the Authority intends to assist small businesses seeking access to financial markets.

“One of the strategies adopted by CMA to support SMEs tap into the capital markets is a review and possible revision of the existing eligibility and disclosure requirements under the Capital Markets (Securities)(Public Offers Listing and Disclosures) Regulations 2002 regulatory framework to make it more responsive to emerging and evolving market needs,” he said.

According to Carole Kariuki Karuga, the partnership will go a long way toward ensuring that many SMEs find their way back to recovery.

“This MoU complements our series of trainings that we have been conducting on businesses, especially in accessing financing. Our MSMEs will now be able to access the capital market products, hence easing their burden of getting credible financing for their operations.” Karuga. 

KEPSA and CMA will collaborate on several projects, including quarterly forums to educate KEPSA members about capital market products and joint publications and research on financial markets to create financial quick reference materials that will be distributed to key stakeholders.