The Capital Markets Authority (CMA) has licensed the Kenyan Alliance Asset Management Limited as a fund manager, increasing the total number of licensed fund managers in Kenya to 42.
With its entry into the market, Kenyan Alliance Asset Management will look to provide wealth and portfolio management services tailored to both individual and corporate clients, in full compliance with the Capital Markets Regulations.
The CMA has also allowed Yeshara Tokens Limited to test a new system for trading real estate using blockchain technology.
Yeshara Tokens has now been granted a 12-month testing period under the sandbox framework, during which it must meet specific requirements outlined by the CMA.
The company will need to follow a proposed testing and customer acquisition plan while developing an exit strategy to facilitate the product’s commercial rollout upon completion of the testing phase.
“Through its blockchain-powered Yeshara Platform, the company will test the trading of tokenized securities, focusing initially on real estate. This innovation is set to unlock liquidity and broaden access to financial markets,” reads a statement from the CMA.
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CMA’s Mission to Foster Market Integrity
The regulatory sandbox provides a secure and controlled environment for testing innovative financial solutions, aligning with CMA’s mission to foster market integrity, investor confidence, and market development.
“The tokenization of real estate holds significant potential to expand access to international financial markets for both local and global investors,” CMA Chief Executive Officer Wycliffe Shamiah noted.
CMA Kenya has reported that blockchain applications have presented unique challenges during the sandbox testing process.
Despite these drawbacks, the regulator continues to see growing interest in blockchain technology, particularly in sectors such as real estate and financial services.
Since the sandbox’s inception in March 2019, the authority disclosed that 9 out of 24 applications were focused on blockchain solutions and real estate tokenization.
Kenya’s Fund Managers Association
A fund manager is a person or a company which manages and executes investment strategies for funds, such as mutual funds, pension funds, trust funds, and hedge funds.
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In Kenya, the Fund Managers Association is the umbrella body for fund managers and was established in 2008.
It aims to promote responsible and sustainable asset management and membership in the association is open to Capital Markets Authority licensed organizations who manage funds on behalf of their clientele.
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