3.1: Alignment with NIFC
Development of a self-assessment tool for the purpose of achieving the MSCI ranking has been done. Tracking the progress towards attainment of MSCI emerging market status has been done on a yearly basis. There are various work stream areas that are perceived not to meet international standard. Kenya's rating on the ABSA Financial market index has also been reviewed. In 2018, it was ranked third in Africa up from position five (5) in 2017.
Shadow ranking indices identified, Barclays index, JP Morgan index and Islamic Finance Index.The JP Morgan Emerging Market Bond Index (EMBI) that is widely used and comprehensive emerging market sovereign debt benchmarks. It is a benchmark index for measuring the total return performance of international government bonds issued by emerging market countries that are considered sovereign (issued in something other than local currency) and that meet specific liquidity and structural requirements.Bloomberg Barclays Global Aggregate index is a flagship measure of global investment grade debt from 24 local currency markets. This multi-currency benchmark includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers. The indices are complementary to each other.
The Authority has also been participating in the process of in the ease of doing business in Kenya. Kenya has consistently improved in its ease of doing business rankings by the World Bank. In 2016, Kenya was ranked at position 113 globally. Regulatory reforms have led to improvements over the years, and in 2020 World Bank Ease of doing business report, Kenya was ranked position 56 globally. The notable regulatory reforms include: (1). Introducing several changes to its insolvency framework, including facilitating the continuation of the debtor’s business during insolvency proceedings, providing for equal treatment of creditors in reorganization proceedings and granting creditors greater participation in the insolvency proceedings. (2) Simplifying the process of providing value added tax information by enhancing its existing online system, iTax. (3). The Ministry of Lands and Physical Planning implemented an online land rent financial management system on the eCitizen portal, enabling property owners to determine the amount owed in land rent, make an online payment and obtain the land rates clearance certificate digitally. (4) Strengthening access to credit by implementing a functional secured transactions system. The law regulates functional equivalents to loans secured with movable property, such as financial leases and fiduciary transfer of title. (5) Strengthening minority investor protections by expanding shareholders’ role in company management, Increased disclosure requirements for related-party transactions and Increasing director liability. Kenya enacted the Companies Amendment Act 2017, which holds directors liable for transactions with interested parties valued at 10% or more of a company’s assets and that cause damages to the company. Directors involved in prejudicial transactions are now required to pay damages, disgorge profits and may be disqualified from holding similar office for up to five years.
Global Financial Centre Index (GFCI)Nairobi entered the Global Financial Centre Index (GFCI) ranking of financial centres published by the Z/Yen Group in 2019. Currently, In GFCI 27, Nairobi has a rankng of 87. Previously, it had been ranked 88 and 97 in GFCI 26 and GFCI 25 respectively.
The Nairobi International Financial Act was developed and gazetted on 3 August 2017.The Act provides for CMA to be a member of the Steering Committee.