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{
    "id": 1092058,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1092058/?format=api",
    "text_counter": 103,
    "type": "speech",
    "speaker_name": "Homa Bay CWR, ODM",
    "speaker_title": "Hon. (Ms.) Gladys Wanga",
    "speaker": {
        "id": 590,
        "legal_name": "Gladys Atieno Nyasuna",
        "slug": "gladys-atieno-nyasuna"
    },
    "content": " Thank you, Hon. Speaker. Pursuant to Standing Order No.44 (2) (c), Hon. Aden Duale requested for a Statement on Wednesday, 23rd June 2021 regarding CMA’s regulatory failures in oversight leading to losses of investors’ funds. He sought for responses to the following issues: (i) The total number of all the unregulated capital markets products in the country and the number of investors in the said products. (ii) The role of the CMA in the proliferation of illegal investment funds in the capital markets in Kenya. (iii) The effectiveness and efficiency of the CMA in regulating capital markets in Kenya and the total number of firms penalised by the CMA in the last five years and remedial action which was taken for investors who lost funds. The Committee held a meeting on Thursday, 8th July 2021 and the CEO of the CMA, Mr. Wycliffe Shamia, responded to the issues raised in this Statement. So, the Statement highlights all the issues that were raised and what their responses were. He told the Committee that the CMA has built a reputation of efficiently and effectively discharging its objectives as required by the CMA Act. Consequently, the authority has been recognised as the most innovative regulator of capital markets in Africa five times in a row from 2014 to 2019. It is also through their good work that the Authority has been recognised through key appointments to the Board of International Organisation of Securities and Commissions, among other things that he said. Finally, the answers were not sufficient. In conclusion, from the responses provided by the CMA, the Committee established that there were more issues that needed to be inquired into. For instance, Members noted that the CMA Act needs to be amended to enable the Authority discharge its mandate effectively. In addition, the Committee was of the view that the matter regarding the collapse of Imperial Bank and Chase Bank needed to be addressed more comprehensively as the primary regulator, the Central Bank of Kenya (CBK), undertook to furnish the Committee with the preliminary findings of the forensic audit carried out following the collapse of the said banks. With regards to the Cytonn Investments Group, the Committee noted the need to engage the investors whose funds were alleged to have been lost and further engage the management of the investment group. It is for the above reasons, therefore, that the Committee is seeking leave of the House to carry out a comprehensive inquiry on this matter and table its recommendations with a view of ensuring that Kenyans who lost their investments in capital markets are duly compensated and prevent future loss. Thank you, Hon. Speaker. 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."
}