It is now official that Paul Muriithi Muthaura is the new CEO of Capital Markets Authority after serving in an acting capacity for nearly four years. On market regulations, he has proved that developing an orderly way of keeping companies in check at the Nairobi Security Exchange for instance, can go a long way. A classic example is how they handled Uchumi Supermarkets that was once under receivership thanks to liquidity problems in circumstances where senior management was accused of creative accounting resulting in material misstatements in the financial reports.
Then came Kenya Airways – highlighted after the release of 2014 audited accounts – and Mumias Sugar Company’s woes. The trouble with Mumias, though, was attributed to poor management and corruption amongst senior management. Well… it is not easy to be the Chief Executive of CMA if these are some of the matters you have to deal with.He was the director, regulatory policy and strategy at the Authority. He has also held positions as the head of legal framework and of enforcement.Before moving into the regulatory industry Mr Muthaura was a senior commercial associate with the law firm of Daly and Figgis Advocates. He is an Advocate of the High Court of Kenya holding a Bachelor of Laws degree from the University of Warwick, a Masters in Banking and Finance Law from the London School of Economics and Political Science.
CMA under Muthaura, as a regulator especially as banking industry is concerned comes under sharp focus in light of the Chase Bank collapse and two other banks before it; Imperial Bank and Dubai Bank. Last year, CMA approved Chase Bank’s bond through which it raised nearly Sh5 billion. Investors and depositors use such a move as a barometer to measure the health of a bank since approving a bond listing is, by all means, giving its finances and management a clean bill of health. Imperial Bank too got CMA’s blessings to raise Sh2 billion through a corporate bond only to go belly up a few months later. Two conclusions here: either CMA isn’t doing its job or its people are being compromised!
Paul has previously worked with the General Secretariat of the International Organization of Securities Commissions (IOSCO) based in Madrid, Spain as an emerging markets advisor. In 2011, he was invited to join the Leadership for Change in Africa Programme of the Africa Leadership Institute (ALI).
