Implications of the Capital Markets (Amendment) Act, 2025 for ownership thresholds in Kenya’s capital markets

Previously, shareholding limits were embedded directly in section 29 of the CMA Act and could only be changed through legislative amendment. This provided certainty but limited regulatory agility, particularly in responding to evolving market structures, new investment models and..

✨ Key Highlights

Kenya's Capital Markets (Amendment) Act, 2025 has significantly altered ownership thresholds for capital markets intermediaries, moving from fixed statutory limits to a more flexible regulatory framework.

The Act repeals previous statutory ownership restrictions, specifically the 25% threshold.
Ownership limits will now be prescribed through regulations by the Cabinet Secretary in consultation with the Capital Markets Authority (CMA).
This change aims to facilitate investment, recapitalisation, and growth by allowing for tailored ownership rules, but introduces a period of uncertainty until new regulations are published.