Mr Paul Muthaura was at the helm of the regulator for more than seven years. PHOTO | SALATON NJAU | NMG After slightly more than seven years at the helm of the Capital Markets Authority (CMA), a soft-spoken Paul Muthaura has exited, leaving behind a mixed legacy.
Mr Muthaura had the option of seeking another term at the three-decade old regulator but opted out at a time the CMA is half-way in implementing its 2014-2023 master plan. The to-do list at the CMA is as long as what has already been accomplished.
He exits with market oversight lapses on the lips of many capital market players. This is especially in the wake of incidents of insider trading and market manipulation in transactions such as the takeover of KenolKobil by French major Rubis Energie.
For the past seven years and seven months he served as the CEO, it has been a roller-coaster ride in making key decisions in rolling out new products to deepen the Sh2.5 trillion Nairobi Securities Exchange but also cut malpractice.
But it has come with its own challenges. In a recent interview with NTV, Mr Muthaura said it has not been easy for the regulator to flex its muscles on those who go against the CMA Act and the rules that govern the conduct of listed firms.
“We have tried to be a very proactive entity but we faced undue challenges from delays in court system. That has translated to the level of confidence we have seen in the market,” said Mr Muthaura.
His successor is expected to have a fairly easier time with courts after the CMA powers were broadened to include enforcing penalties and sanctions. This had been challenged before.
Mr Muthaura has served the CMA in other roles such as acting manager for legal affairs (2008), senior legal officer for regulatory framework (2005 –2008) and director of regulatory policy and strategy between November 2011 and June 2012.
He has been instrumental in positioning the CMA in the regional and global capital markets through enhancing regulatory and legal framework and expanding the scope of capital markets products.
During his tenure as the chief executive, the CMA has been feted as the most innovative capital markets regulator in Africa four years in row, from 2015 to 2018.
Products such as the Growth Enterprise Market Segment (Gems), Gold Exchange Traded Funds, Ibuka programme and the derivatives market have all come to the NSE under Mr Muthaura’s […]