Enhancing Securities Markets in Sub-Saharan Africa: An Overview of the Legal and Institutional Arrangements in Kenya

Abstract

This paper explores the role of legal norms in the enhancement of securities markets in Sub-Saharan Africa where the markets are still nascent with specific reference to Kenya. Part I highlights the critical role that the legal and institutional framework plays in securities markets governance and investor protection. It postulates that for securities markets to thrive and deepen, countries must endeavor to create appropriate legal and institutional arrangements. Part II is an elucidation of the legal structures on securities markets and the financial services sector in Kenya. From the discussion, it is clear that the framework is characterized by gaps, duplications, inconsistencies and restrictions on investment. More importantly, there has never been a comprehensive approach to the promotion of financial services in Kenya. Part III examines the institutional arrangements and assesses their contribution to the enhancement of securities markets. Evidently, the multiplicity of regulatory bodies has not endeared the securities markets and there is need for reforms.