National Treasury Cabinet Secretary Mr. Henry Rotich wants the Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK) to be more proactive in protecting consumers in the financial sector.
Mr. Rotich who spoke in the wake of mounting spotlight on CMA and CBK over failure to deal with trouble at Imperial Bank before it went under while the two regulators had made progress in enhancing market supervision, said they need to enhance their vigilance.

“They (CBK and CMA) need to up their game in market supervision.  The new CBK board is only at its initial stages but we expect it to be able to respond and identify issues before they arise,” Mr. Rotich said.
Pressure on banks in the country heightened last week after the CBK put Imperial Bank under statutory management, barely months after the collapse of Dubai Bank.
The move sent shockwaves in the banking sector in the region and elicited fresh questions on whether some financial institutions have been eluding the regulations and perpetrating fraud schemes unnoticed.
CMA has since rescinded its decision.  “As a result of the interventionary action by the CBK, the Capital Markets Authority had directed the Nairobi Securities Exchange to suspend the introduction of the listing and trading for the listing and trading of the Corporate Bond issued by the Imperial Bank.  This suspension has been imposed in the public interest and to protect the interest of investors,” CMA acting CEO Mr. Paul Muthaura said following the move in a statement.