NAIROBI, (Xinhua) --
Kenya plans to enact a series of reforms to
combat money laundering and terrorism financing, a senior
government official said on Wednesday.
cabinet secretary in the National Treasury, said in Nairobi that
money laundering has devastating economic, security and social
consequences because it diminishes government tax revenues and
harms honest taxpayers.
“I have therefore
proposed amendments to the Capital Markets Act in order to
curtail money laundering and the financing of terrorism as well
as other key capital markets’ malpractices including corporate
governance breaches,” Rotich said during the launch of the
Capital Markets Authority (CMA) 2018/2023 strategic plan.
Kenya cannot afford
to have its reputation and financial institutions tarnished by
associating with money laundering, especially in today’s global
economy, Rotich said.
He said the
government will also scale up reforms that will improve
corporate governance and enhance uptake of capital products and
The level of new
investments in the capital markets remains limited, with only 66
companies listed on the Nairobi Securities Exchange, Rotich
“So in order to
encourage new listings particularly by local firms, the CMA will
review its regulatory and legal framework to encourage new
listings. This will enhance liquidity at the capital market and
make the stock exchange more vibrant,” he said.
Rotich said that as
economies develop, capital markets tend to play a bigger role
than the banking sector.
“At the moment the
banking sector assets contributes over 75 percent of all
financing in Kenya while the capital markets and other financial
sub-sectors contribute the remainder,” Rotich said.