CMA launches investor education

By Francis Ngige

Only 10 per cent of Kenyans have invested in the stock market, says the Capital Markets Authority.

The apathy has been attributed to lack of awareness on the importance of such investment and how the capital markets work.
To reverse the trend, CMA has unveiled an investor education in the 47 counties.

Speaking in Nyeri in one such forum, CMA Manager for Investor Education and Awareness Kamunyu Njoroge said out of the 40 million Kenyans, only about five per cent are investing in the capital market with only 10 per cent of adult Kenyans involved.

“We have realised there is lack of knowledge on the capital market. We want to dispel this notion that stocks are for the rich people,” said Njoroge.“Some people do not know that with as little as Sh500 they can buy shares. We want to increase investors in bonds and shares.”

The forums, which have already been held in Machakos, Nakuru and Eldoret, are targeting people in the grassroots.
Stock marketThe official who spoke at White Rhino Hotel during one of the clinic said CMA hopes to raise the number of people investing in stock market at the end of the regional tours.

He said reforms are underway in the capital market industry to ensure brokers and investment banks are strong companies that would not risk investors’ money.Investor education and public awareness has been identified in the past as a key development of capital markets in the country.

Njoroge said there was need for the public to appreciate the existence of huge investment opportunities available in the stock market and also know about the risks.

“The forums are intended to make the investing public know their rights and responsibilities as well as roles of other capital market shareholders,” said Njoroge.