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The Capital Markets Authority (CMA) has advised county governments to raise cash from the public through sale of bonds to finance major infrastructure projects.
CMA acting Chief Executive Officer Mr. Paul Muthaura said with the commencement of new CMA guidelines next month, devolved governments will be able to issue infrastructure bonds.
Mr. Muthaura said guidelines to issue infrastructure bonds were ready and would soon be published to enable counties to structure asset-backed securities (ABS) to raise money from the capital markets.


He said past efforts by county governments to tap money to finance huge infrastructure projects from the bourse had been held back due to lack of clear guidelines.
He said counties will use the new guidelines to identify projects and based on the projected revenues from proposed projects, they will be able to borrow cheaply from the markets.
The guidelines, he said, will enable counties to easily float asset-backed securities or infrastructure bonds to finance mega projects.
While speaking in Mombasa during a campaign on opportunities in capital markets organized by Kenya National Chamber of Commerce and Industry in Mombasa, Mr. Muthaura said the new guidelines would help counties to leverage on capital markets to finance huge projects like roads, bridges, sewerage, markets and even ports.
He said CMA has already visited 17 out of 47 counties in its efforts to deepen financial literacy and encourage county governments to take advantage of the numerous attractive financing opportunities available in capital markets.
CMA said it had reached an agreement with both the national and county assemblies on how the developed units can issue bonds using the new guidelines.
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