1.2: Address devolution funding needs
The Authority continues to undertake targeted engagements with various public agencies at the National and County level. The Authority developed a high-level policy paper on securitization for counties that was shared with the National Treasury and considered by CMMP - National Steering Committee on 8 November 2016. The CMMP-NSC guided that a legal opinion from the AG is required on the counties overall legal capacity to issue county project bonds prior to circulation of the paper to the Council of Governors. Additionally, the Authority submitted the request for a legal opinion for the provision on the use of SPVs in securitization processes for county governments. The Authority is engaging the AG on the same. The following counties have been visited from 2014 till March 2019: Bomet, Busia, Bungoma Embu, Eldoret, Garissa, Homabay, Isiolo, Kajiado, Kakamega, Kericho, Kiambu, Kilifi, Kirinyaga, Kitui, Kisii, Kisumu, Kwale, Laikipia, Meru, Mombasa,Murang'a, Nairobi, Nakuru, Narok, Nyahururu, Nyeri, Siaya, Taita Taveta, Uasin Gishu.Following the completion of Capital Markets Investor Behavioural and Opportunities Study in 2019, the Authority has a newly adopted Investor Education Awareness Strategy that includes specific programs targeting the Counties through strategic partnerships and intermediary empowerment through a train the trainer program. An Action Plan from the strategy has been developed and is currently under implementation. The departmental Action Plan includes a Comprehensive County engagement plan. The County engagements will commence the week of October 5th, 2020 as part of the World Investor Week 2020. The plan will leverage more technology and electronic medium to mitigate the current pandemic with respect to social distancing.
The terms of reference to conduct an investor education measurement index survey over the past two years inclusive of the Counties have been developed to determine the shift in measurement index to inform further strategies.
The Opportunities for access to Capital Markets Financing for National and County Governments in Kenya study conducted yielded in its first phase a legal report that sought to interrogate the various laws and identify the gaps and/or the impediments within the legal framework as well as their implications towards access to market-based financing by County Governments and State-Owned Enterprises. The Legal report was reviewed by Working Group One in February 2018.The capital markets county borrowing checklist was developed by the WG1 in collaboration with the International Finance Corporation, the Commission on Revenue Allocation, the National Treasury, the Nairobi Securities Exchange, and I&M Burbidge Capital and is awaiting a nod from the National Treasury.