1.3: Enhance consumer education and literacy

Measurement
A national committee formed in short term and financial education policy is in place in the medium term.
Working Group
WG1
Implementation Progress

In September 2017, the Authority engaged a consultant to conduct a Capital Markets Investor Behavioral and Opportunities Study which was completed in June 2018. 

The study resulted in:

  • A Comprehensive Report on the capital markets investor behavioural and situational analysis study which will then be used as a basis for future assessment and analysis. This report captured current demand and supply situation and identified strategies for various market segments and priority sub-groups;
  • Development of a   new investor awareness strategy   for   each   of   the   sub-groups   under   the   Authority’s primary target constituents for implementation through the investor education program;
  • Development of an impact analysis measurement index for use to gauge the effectiveness of the investor education initiatives scientifically.
  • Development of a white paper on Consumer Financial Education Strategy Markets to Capital markets contribution to the National Consumer Financial Education Strategy.

At the same time CMA together with other financial sector regulators, under the joint financial sector regulator forum, has partnered with Kenya Institute of Curriculum Development (KICD) to infuse financial sector terms into the school curriculum. So far:

  • The curriculum developers have completed the field training 470 teachers drawn from all the 47 Counties.
  • Financial Literacy was embedded in the primary school curriculum design by infusing capital markets terminology in business studies.

With respect to national strategies, the white paper that will form the basis for a National Consumer Financial Education Strategy in Kenya was finalized by management and forwarded to the Joint Financial Sector Regulators (JFSR) by the current chair, Governor of Central Bank of Kenya for JFSR’s input and presentation of the JFSR position to the National Treasury.

The paper which focussed on capital markets is expected to receive adoption from the other financial sector regulators with a view to inform a journey towards the national financial literacy.  Further,  a committee comprising of industry players to conduct a campaign and re-tool investment by retail investors to pooled vehicles such as CISs, Chamas, SACCOs and Pension Plans amongst others was also formalized with a view to implement interventions  deepening the market in Kenya targeting retail and institutional investors.

Developed terms of reference to conduct an investor education measurement index survey over the past two years inclusive of the Counties to determine the shift in measurement index to inform further strategies.

The Authority continued with imparting knowledge by working with the Kenya Institute of Curriculum Development (KICD) and other stakeholders, towards the infusion of financial literacy within the recently launched Competency-Based Curriculum in Kenya.  

Timelines
2016-2020
 
Status
In Progress (Within Schedule)
Measurement
Bi-annual Impact Assessment Survey.
Working Group
WG1
Implementation Progress

The Authority developed and is implementing, through annual investor education action plans, a new Investor Education Strategy for 2018-2023 structured around core segments that are compartmentalized, broken down, and targeted separately / sequentially rather simultaneously to maximize the impact through forums, open days and exhibitions, roadshows and Capital Markets University Challenge programs.

Timelines
Continuous
 
Status
Continuous