CAM Releases 28th Soundness Report Quarter 3

Nairobi,

Tuesday, October 31, 2023

KNA by Nkooma Samson/Okal Kevin

The Capital Market Authority (CAM) has unveiled its July to September soundness report that aims to reflect the developments that continue to impact Kenya's Capital Market.

The quarterly report will pave the way for CAM to throw back on the international, regional, and domestic dynamic and financial developments that influence the CAM domestic space as well as the risks and opportunities in the global market space.

Speaking at the event, Chief Executive Officer (CEO) CAM Wycliffe Shamila explained that the global economy has demonstrated greater resilience during the first half of 2023 than the initial anticipation.

However, he added that the overall growth outlook has been reported weak with a projection of the global growth in 2024 to appear lower than that of the current year reducing from 3% to 2.7%.

“Global macro-economic shocks such as the certain rise in global crude oil prices, the strengthening of the US Dollar against domestic currencies of volunteer markets, and the search for yield delivering an emerging geo-political risk continue to hinder the revetments of the capital market recoveries trajectory post-Covid,” Shamila stated.

Shamila maintained that the quarterly report is connected to navigating cyber security in capital markets amid rapid technology advancement to underscore the persisting cyber security challenges encountered within the capital market in environments characterized by ongoing technological evolution and the need for industry-wide cyber self-resilience strategies.

He vowed that they would hold engagements with other industries and stakeholders toward creating a stock market served by a flexible framework.

Additionally, Shamila admitted that during the quarter, the domestic market has remained solid and attractive to investors believing that their position as a market is currently fair. Further, he hoped for investors to take over investment chances due to the market-friendly prices.

Moreover, the CEO complimented the Central Bank of Kenya for launching a new Central Sales Tax system which will enable Kenyans and Diasporas to invest in government securities easily and conveniently.

Equally important, Shamila lauded The National Treasury and Economic Planning for having gazetted amendments in October this year that regulated the amount of fees charged for fixing online Forex broker businesses and reducing the minimum investments into burex from Sh.5 million to Sh.100, 000.

The CEO was optimistic that the regulation will significantly improve what is seen as an uptake of some products in Kenya.

In addition, he recognized the government's efforts for consistent support within the financial sector as well as the capital market space.

Courtesy; KNA