Kenyan investors have been shunning the capital markets as a result of high transaction fees, low market awareness and a myriad of regulatory red tape associated with investing.
Other than the capital to inject into businesses, investing is an important skill to have more so if you’re looking to plum your investment in the capital markets.
However, many people lack the necessary information and guidance to invest wisely in the Capital Markets in Kenya.
In an effort to increase the uptake of Capital Markets Authority products in the country, the regulator recently organized an open day. The objective of this event was to educate Kenyans about the various opportunities they can tap on the bourse.
These opportunities include investing in capital market authority products such as bonds, T-bills, shares, and REITs. Now that the second Virtual Open Day has concluded, it is important to discuss a critical aspect of investing: conducting due diligence to avoid online scams.
Informed investors understand the importance of verifying a company's legitimacy before making any investment decisions. It is advisable to involve CMA in this process as they prioritize protecting your interests.
To ensure you invest in licensed companies, you can simply visit the CMA website Kenya ie www.cma.or.ke, or their social media handles such as "capital market authority Kenya" or download the CMA Kenya App from Google Play or the iOS App Store. These resources provide detailed information on capital market investment.
With the government's commitment to seeking capital from the capital markets for development funds, the open day aimed to mobilize public funds for long-term investments in infrastructure and other projects.
This involves encouraging the public to purchase shares and bonds of companies listed on the Nairobi Securities Exchange (NSE), as well as government bonds and treasury bills.
Before Covid-19, struck the Capital Markets Open Day took the shape of an exhibition/exposition at KICC, where CMA and all licensed capital markets intermediaries converged
This brought together stock brokers, investment banks, fund managers, investment advisors, collective investment schemes/unit trusts/mutual funds, online forex trading brokers and money managers, Nairobi Securities Exchange (NSE) and Central Depository & Settlement Corporation gathered and rent exhibition booths for five days for one-on-one interaction with potential retail investors and shareholders of companies listed at the NSE.
According to CMA with continued and active consumer education on products, services and procedures of the financial markets, retail investors can be better positioned to make sound investments in anticipation of the realization of the bottom-up-economic model.
Dosikaa na CMA.
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