CMA lines up more reforms as State targets retail traders
Enterprise
By
Graham Kajilwa
| Feb 11, 2026
The Capital Markets Authority (CMA) is set for more reforms with a keen interest in private businesses as the government seeks to make the Nairobi Securities Exchange (NSE) more accessible to a majority of Kenyans.
President William Ruto on Tuesday said his administration is coming up with more incentives for private businesses to list on NSE alongside government agencies in order to reduce the crowding-out effect they cause in the credit market when raising capital. He said motions are already before the Cabinet Secretary for Treasury John Mbadi, for perusal and possible adoption.
The President, who was speaking during the launch of Ziidi Trader, a Safaricom-backed share trading platform, said earlier reforms championed by his administration have seen market capitalisation improve from Sh1.2 trillion in 2022 to the current Sh3 trillion.
Subsequently, the NSE was rated the best exchange in Africa in 2024 and second best in 2025.
“We are yet to finalise the reforms that will assist these capital markets to get to its optimal potential,” he said. “There are some interventions that we will be discussing with the CMA. Mbadi and his team will go through the motions so that we can finally get every Kenyan on board and participate in the economy of our country.”
Some of the reforms that the government has been upbeat about, listing them as the reasons behind the NSE boon, include the strategic reduction of the Central Bank Rate (CBR) to a single digit from a high of 13 per cent, which made investors shift their money to the capital markets and introduction of single-share trading.
President Ruto said due to these reforms, even local investors have regained confidence in the capital markets that was previously dominated by foreigners to the tune of 80 per cent on some counters.
“We will shortly be looking at what other incentives we can put in place for private companies to also list on NSE so that we democratise wealth and reduce the burden of borrowing,” he said. “Private sector companies, instead of borrowing from banks for expansion, should be able to come to NSE.”