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Capital Market Authority sign MoU with KAM to support manufacturing sector

In Summary

• The two firms will collaborate to identify and analyze funding gaps, institutional challenges and key impediments in the manufacturing sector and collaborate on implementing solutions to the same.

Capital Market Authority chief executive Officer Paul Muthaura during a media briefing on the Capital Market soundness report in Nairobi on August 2,2017. PHOTO/ENOS TECHE.
Capital Market Authority chief executive Officer Paul Muthaura during a media briefing on the Capital Market soundness report in Nairobi on August 2,2017. PHOTO/ENOS TECHE.

The Capital Markets Authority has signed an agreement with  manufacturers  to promote the growth and development of the manufacturing sector through the capital markets.

It will collaborate with the Kenya Association of Manufacturers to identify and analyze funding gaps, institutional challenges.

“This partnership will enhance our ability to examine the strategies to create a pipeline of issuers of traditional and new capital market products to support manufacturing,” said CMA Chief Executive,  Paul Muthaura.

 
 

This collaboration is also in support of the manufacturing pillar of the President's Big 4 agenda and Sustaianable Development Goals.

“This collaboration comes at a time when manufacturing has been identified as a key pillar in the economic agenda of the country and will be a catalyst towards increasing the GDP Contribution of the sector from 7.7percent to 15percent by the year 2022,”said KAM Chief Executive, Phyllis Wakiaga.

In line with the CMA Strategic Plan, products such as project bonds, private equity, Development REITS, Green Bonds and restricted public offerings can be leveraged to develop the manufacturing sector at national and county level.

Muthaura observed that the share of manufactured products in Kenya’s exports can be increased and transformed to support value addition and a shift towards sustainable, inclusive trade.

The partnership will also support research and analysis, capacity building and financial inclusion.