Access to government securities in Kenya is easy and the market is growing. But commercial disputes are becoming more prevalent in Kenya. Policy makers need to focus on several factors to promote growth in the securities market. Among them, they should focus on the regulation of stock brokers, individual investors and institutional investors. Further, they should consider the privatization of state-owned enterprises.
Kenya’s securities market is growing in the country
In recent years, Kenya has begun introducing new products to the securities market, including the sale of government securities. These products are available to both residents and non-residents. Kenya’s government securities are available to individuals and corporates, and are relatively easy to purchase. To invest in Kenyan government securities, an investor must register an account with the Central Bank of Kenya or an authorized agent.
Over the past decade, Kenya’s financial system has undergone enormous growth. The government began diversifying its financial system in 2001 with the relaunch of the Treasury Bonds programme. It was designed to balance Kenya’s domestic debt portfolio by increasing the proportion of bonds to bills (24 percent to 76%).
In a study conducted in 2012, the effects of stock market liberalization on the Kenyan economy were evaluated using turnover and market capitalization. Quarterly time series data were used and covered a period of 22 years between 1991 and 2012. The researchers used econometric methods to analyze the data and found a one-way causality between the development of Kenya’s stock market and economic growth.
Commercial disputes are more common in Kenya
Kenya’s courts are experiencing a backlog of cases that need to be adjudicated. As a result, the number of commercial disputes is on the rise. This has led to a need for alternative dispute resolution (ADR) methods. The use of arbitration is increasingly common in Kenya. This process focuses on solving disputes by identifying the most efficient solution for the parties.
African judicial systems are notorious for slow and expensive procedures. As a result, foreign investors and private actors are looking for locations where dispute resolution processes are effective and speedy. However, before settling on a particular venue for a dispute, it is crucial to learn about the laws applicable in the country.
Kenya’s Constitution recognizes the importance of culture in nation-building and civilization. This includes the value of customs and traditions. It also states that judicial authority is derived from the people and exercised by courts and tribunals. These bodies must ensure that justice is done for all parties and that the process does not delay the process due to procedural technicalities.
