This is very old news and I should have written about it sooner BUT here it is now. The Capital Markets Authority Kenya, in their 2009 Annual Report discussed some of the remedies they designed after the failure of Nyaga Stockbrokers. If you recall, this firm essentially went in to receivership in 2008 with the CMA in charge and lots of investors lost money. At the same time several other stockbrokers in Kenya went bust.
The CMA Kenya got busy and make changes to its own rules and even compensated investors out of the Investor Compensation Fund. It was the first time that the CMA utilized the fund to compensate the investors who lost monies when Nyaga Stock Brokers went under statutory CMA Kenya management. By the end of 2009, those investors with claims of Kshs 50,000 and below were compensated.
Honestly, this is how things should be working at all CMA's. I think it a real step forward in terms of confidence in the markets. Now, how all the new Constitution and political stuff affects the markets is another thing. It never seems to be all working in the same direction at the same time. Never mind, I applaud the CMA Kenya for stepping up and improving investor confidence in the Nairobi Stock Exchange and the capital markets in Kenya.
1) Capital Markets Authority Kenya Annual Report 2009
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