NAIROBI (Xinhua) --
Kenya plans to deepen its capital markets to reduce
its public debts, an official said on Tuesday.
Muthaura, chief executive officer of capital markets authority
(CMA), told journalists in Nairobi that a well developed capital
market will help to reduce both domestic and external borrowing by
"Capital markets offer a long term market risk financing options
that be used to fund public projects and reduce government reliance
on borrowing," Muthaura said during the launch of the capital
markets university challenge.
The university challenge hopes to facilitate the increase of
knowledge and uptake of capital markets products and opportunities
by up and coming generations.
Muthaura said the real objective is to inculcate a culture of
savings and investments amongst the youth and to build a growing
legion of ambassadors for the role of the capital markets in
national growth and transformation.
The CMA plans to rollout an education and sensitization campaign
so that more policy makers in government can turn to capital markets
to raise funds for public projects.
Muthaura said that increased use of capital markets for public
projects has numerous benefits to the economy as the government will
avoid competing with the private sector for loans from financial
One of the tools that the capital markets regulator plans to use
to increase uptake of capital market products is technology.
The CEO said that while Kenya still enjoys its stature as a hub
of innovation, the country’s capital markets are yet to fully
utilize the opportunity presented by financial technology (fintech)
innovations to push capital market activity to the next level by
broadening product and service offerings, deepening market
participation and liquidity, and driving transformative economic
"Kenya therefore stands to greatly benefit from fintech
innovation especially given that the proportion of Kenya’s youth to
the population is among the highest globally, presenting the economy
with a vibrant competitive advantage," he added.
He observed that technological innovation is becoming a major
economic and social development accelerator on the African
"In this regard, the CMA has prioritized efforts towards the
establishment of a Regulatory Sandbox to support innovation and
development of new products and services," Muthaura noted.
He noted that supporting fintech innovation is in full alignment
with the 10-year Capital Market Master Plan’s rationale to stimulate
innovation, to broaden product and service offerings, deepen market
participation and liquidity, and drive transformative economic