CMA and Afri Fund Capital sign MoU to support uptake of capital market products

The Capital Markets Authority (CMA) has signed a
Memorandum of Understanding (MoU) with Afri Fund Capital (AFC) to promote
uptake of capital market products to fund various infrastructural projects including
projects in the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor.
AFC, an infrastructure investment and project development firm, is undertaking
initiatives to structure, mobilize and deploy private capital to finance bankable
development projects. These include infrastructure, power generation, logistics,
industrial development, and Special Economic Zone (SEZ)-linked opportunities
aligned to national and regional development priorities. The investments are
earmarked for the LAPSSET Corridor to unlock the immense untapped potential of
the Northern Kenya region.
Through the MoU, CMA and Afri Fund Capital have mapped several priority areas
including; identifying and prioritizing a pipeline of capital market instruments relevant
to the markets deepening agenda; infrastructure-related instruments; green/ESG-
labeled instruments; and collective investment vehicles, among others. The MOU is

also expected to facilitate early-stage product structuring considering critical issues
such as investor protection, disclosures, governance, eligibility, and suitability.
Speaking after signing the MOU, the CMA Chief Executive Officer, Mr. Wyckliffe
Shamiah, said; ‘’the collaboration with Afri Fund Capital is timely as the capital
market is well positioned to mobilise private capital to fund infrastructural projects
expected to catalyse additional economic activity in Northern Kenya. This strategy is
aligned to the National Government Agenda of leveraging private capital to fund
priority national infrastructure projects’’.
The Afri Fund Capital Chief Executive Officer, Mr. Martin Ngunga, observed; ‘’our
project funding model is designed to ensure we broaden participation and inclusivity
by deploying innovative and relevant financial market instruments. We see the
collaboration with CMA as key in facilitating issuance of relevant capital market
instruments which are aligned to the long-term nature of infrastructure projects’’.