Kenya’s Capital Markets Authority (CMA) is working on new measures to revive the troubled corporate bond market that will see companies with weaker balance sheets forced to acquire bank guarantees to protect investors’ interest in the event of default.
The market regulator is seeking ways to deal with credibility issues that hit the corporate bond market after the collapse of issuers such as Chase Bank, Imperial Bank, Nakumatt, and cement maker ARM without a clear-cut compensation mechanism for bondholders.
