CMA: Kenya's Capital Markets Authority Signs MoU with Afri Fund Capital for LAPSSET Projects

• CMA and Afri Fund Capital sign MoU to promote uptake of capital market products.
• MoU aims to support funding of infrastructural projects, including the LAPSSET Corridor.
• Partnership expected to facilitate growth of capital market products in Kenya.

The partnership between CMA and AFC is expected to facilitate the growth of capital market products in Kenya, which have been slow to gain traction in recent years.

The Capital Markets Authority (CMA) has taken a significant step towards promoting the use of capital market products in Kenya by signing a Memorandum of Understanding (MoU) with Afri Fund Capital (AFC). The MoU aims to support the uptake of these products, which are essential for funding various infrastructural projects. One such project is the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor, a major infrastructure development initiative in East Africa.

The partnership between CMA and AFC is expected to facilitate the growth of capital market products in Kenya, which have been slow to gain traction in recent years. The MoU will enable AFC to structure and develop projects that can be funded through these products.

The signing of the MoU between CMA and AFC is a significant development for the Kenyan capital markets, particularly in relation to project financing. The partnership highlights the importance of regulatory support in promoting the use of capital market products. In Kenya, the Capital Markets Authority plays a crucial role in regulating the capital markets and ensuring compliance with relevant laws and regulations.

The MoU is also expected to have implications for lawyers advising on Kenyan capital markets transactions. They will need to consider the potential impact of this partnership on project financing structures and compliance with regulatory requirements.

The signing of the MoU between CMA and AFC has far-reaching implications for Kenya's economic development. The promotion of capital market products will enable more projects to be funded, which is essential for achieving the country's infrastructure development goals. Additionally, the partnership will contribute to the growth of the Kenyan capital markets, making it easier for investors to access these products.

The success of this partnership will also have a positive impact on the LAPSSET Corridor project, which is expected to boost economic activity in East Africa.

Lawyers advising on Kenyan capital markets transactions should watch for the potential impact of this MoU on project financing structures and compliance with regulatory requirements.

Source: Original reporting via [Source]