Draft Regulatory Sandbox Policy Guidance note


The Kenya Capital Markets Authority (CMA) Regulatory Sandbox Policy Guidance Note is a guide on the operational environment of the CMA's Regulatory Sandbox Program and intended to inform about future refinements of its framework. The Guidance includes a comprehensive draft of the regulatory sandbox framework and an application form for potential candidates who have innovative products or solutions to be released in Kenya.

An excerpt from the Note, issued in December 2018 includes the following:

This Policy Guidance Note provides a framework for a Regulatory Sandbox (“the Regulatory Sandbox”) to allow for testing of innovative products, solutions and services that have the potential to deepen or broaden the Kenyan capital markets.

ii. The Regulatory sandbox is a tailored regulatory environment for conducting limited scale, live tests of innovative products, solutions and services. The Regulatory Sandbox provides an evidence-based tool for fostering innovation while allowing the Authority to remain vigilant to investor protection, financial stability and integrity risks.

iii. The Regulatory Sandbox supports the broader national policy agenda described in Kenya Vision 2030 and the 10-year Capital Market Master Plan. Drawing on emerging global best practices, the Authority seeks to position the Regulatory Sandbox as a tool for facilitating capital markets innovation in Kenya and helping to advance the Authority’s goal of creating a vibrant and globally competitive financial sector.

iv. This Policy Guidance Note sets forth the eligibility, application, safeguard, and testing requirements for firms interested in live testing of innovative products, solutions or service with the Authority’s Regulatory Sandbox. The Regulatory Sandbox application form is attached hereto as Annex A.

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Tuesday, December 18, 2018
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Capital Markets Authority
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