According to the World Bank, Kenya has been one of the fastest
growing economies in sub-Saharan Africa over the past decade.
this growth to be sustained into the future and help reduce poverty,
critical reforms are required," it said.
World Bank Task Team Leader Allen Dennis said the policy and
institutional reforms supported by this operation will help improve
the standard of living of ordinary Kenyans.
"The policy reforms will contribute to improving good governance
by the reinforcement of accountability and enforcement mechanisms
through the use of digital technologies," Dennis said.
Kenyan bourse receives
approval to launch derivatives exchange market
NAIROBI (Xinhua) --
Kenya’s financial market regulator on Wednesday granted approval to
Nairobi Securities Exchange (NSE) to launch and operate the
Derivatives Exchange Market.
The Capital Markets Authority (CMA) said the derivatives market
will provide an appropriate avenue for investors to both diversify
their portfolio as well as protect investments from the volatility
of the securities market.
"The approval granted to the NSE to operationalize a derivatives
market marks the achievement of a flagship project under the
Economic Pillar of Kenya’s Vision 2030, Paul Muthaura, CMA chief
executive officer, said in a statement issued in Nairobi.
A derivatives market involves the trading of financial
instruments like feature contracts, stocks, indices, commodities,
currencies, exchange rates, or the rate of interest.
Muthaura said the derivatives market will facilitate deeper and
more liquid capital markets and position Kenya closer to becoming
the "heart of capital markets investment in Africa," as envisioned
in the Capital Markets Master Plan.
The approval move follows the successful completion of a
six-month derivatives pilot test phase conducted between July and
December 2018, and resolution of key issues that emanated from the
According to CMA, the derivatives market will initially offer
investors Equity Single Stock Futures (SSF) and Equity Index Futures
(EIF) and later introduce other financial and commodities
Matthew Mukisu, manager at the Derivatives Unit, observed that a
robust infrastructure has been set up to facilitate trading, risk
management, clearing and settlement.
Two banks, Stanbic Bank and the Co-operative Bank, have been
approved by their primary regulator to provide clearing and
settlement for the Derivatives Exchange Market.