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{
    "id": 1081635,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1081635/?format=api",
    "text_counter": 126,
    "type": "speech",
    "speaker_name": "Garissa Township, JP",
    "speaker_title": "Hon. Aden Duale",
    "speaker": {
        "id": 15,
        "legal_name": "Aden Bare Duale",
        "slug": "aden-duale"
    },
    "content": " Hon. Speaker, pursuant to the provisions of Standing Order 44(2)(c), I rise to request for a Statement from the Chairperson of the Departmental Committee on Finance and National Planning regarding the Capital Markets Authority’s failure to regulate capital markets, leading to loss of funds and investments of many innocent Kenyans. The CMA is established as an independent capital markets regulatory agency to supervise, license and monitor activities of market intermediaries that include stock exchange and the central depository and settlement scheme, including all other persons licensed under the CMA Act. The principal objective of CMA is to create, maintain and regulate capital markets where securities issued are traded in an orderly, fair and efficient manner through the implementation of a system in which the market participants are self-regulating to the maximum practicable extent as provided for under the CMA Act. Further, the Authority is required to ensure protection of investor interest under section 11(1)(b) of the Act. In the recent past, the capital markets industry has experienced failure, including the proliferation of unregulated and illegal investment funds, and loss of funds by innocent investors. This has brought into question the effectiveness and efficiency of CMA in regulating capital markets in Kenya. Some of the instances which point to failure of CMA to regulate capital markets industry effectively, in total disregard of section 11 of the Act, include: In 2005, the Imperial Bank Limited allotted Kshs2 billion to bondholders despite having ongoing financial fraud within the bank. The bank eventually collapsed, together with investor funds, under the watch and licensing of CMA. In 2005, CMA cleared Chase Bank to issue Kshs4.8 billion bonds, which subsequently fell into receivership with investor funds, and later sold to SBM Holdings from Mauritius as a result of poor regulatory oversight by CMA. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}