Kenya is considering legal and regulatory reforms that will enable the issuing of COVID-19 bonds, the capital markets regulator said on Tuesday.

Wyckliffe Shamiah, acting CEO of Capital Markets Authority (CMA) told a virtual meeting that already many governments, institutions and corporations worldwide have raised funds from investors by selling COVID-19 response bonds.

“As a regulator of the capital markets, we think it is a good idea if investors can tap into the market to raise funds to mitigate COVID-19 so long as their purpose is clear,” Shamiah said.

He said that for the bonds to be listed locally, the existing legal framework might need to be customized to enable the issuance of the debt instruments.

Shamiah added that in the countries where the bonds have been successfully subscribed by investors, they have received government support.

He noted that they have already approached relevant government departments in order to consider making the legal reforms.

According to CMA, issuers of the COVID-19 response bonds will only be permitted within specific guidelines in order to protect investors.

The capital market regulator observed that the successful issuance of the bonds by other countries and international financial institutions indicates that there is investors’ appetite for the securities.

Shamiah said that all the financial sector regulators in Kenya are working together in order to mitigate the COVID-19 related impacts.

Disclaimer: News Ghana is not responsible for the reportage or opinions of contributors published on the website.

Send your news stories to [email protected] and via WhatsApp on +1-508-812-0505 

Previous articleUN calls for more efforts to improve nutrition status in Somalia
Next articleTunisia sees rapid spread of COVID-19 – health official
Xinhua News Agency, Xinhuanet is an important central news service-oriented website, an important information organ of the central government, and an important platform for building up China's online international communication capacity. Established on November 7, 1997, as an online news provider of the Xinhua News Agency, it was officially named Xinhuanet on March 10, 2000 and began around-the-clock news release with leading online public opinion at home and setting a good image of China abroad as its main task.


Please enter your comment!
Please enter your name here