The Capital Markets (Amendment) Act, 2025 (Amendment Act) introduces a significant shift in the regulation of ownership structures within Kenya's capital markets sector.
The Amendment Act repeals the statutory ownership restrictions previously contained in Section 29(4) to (7) of the Capital Markets Act (Cap. 485A) (CMA Act) and replaces them with a framework under which ownership limits will be prescribed through regulations issued by the Cabinet Secretary responsible for matters relating to capital markets, in consultation with the Capital Markets Authority (CMA).
Importantly, the repeal does not affect the core licensing provisions under Section 29 or the broader licensing and supervisory framework applicable to capital markets intermediaries. While this enhances responsiveness to market developments, it also introduces a period of uncertainty as the detailed ownership rules will now be set through subsidiary legislation yet to be issued.
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