CMA targets betting youth with short-term speculative products

The Capital Markets Authority (CMA) wants to develop speculative mobile-based products with short-term maturity to tap youths’ betting craze that has taken the shine off the Nairobi bourse.

CMA chairman James Ndegwa said the over 41 million mobile phone users in the country, 78 per cent estimated to be below 35 years, presents an opportunity to develop products that can give returns within a short period as does gambling.

“There can be little question that the time is ripe to develop and roll out mobile-based capital markets products such as M-Akiba,” he said.

He added the youth stand at the forefront of driving such innovations as well as participating in new offerings through application of block chain technologies to address market structure and access challenges.

Speaking during the launch of World Investor Week 2018, CMA chief executive Paul Muthaura said the search for investment options that give a return within a short period has driven the youth to gambling.

“For young people, we are thinking of products that are more speculative in nature such as online foreign exchange product,” he said.

Forex trading (FX) is the speculation of one currency price against another currency. In February, CMA licensed Execution Point Ltd to operate as an online foreign exchange broker.

Execution provides platform for clients to trade from anywhere and at any time using their electronic devices.

CMA has recognised gambling as a threat to winning new investors and has even made proposal to National Treasury to offer gamblers tax incentives if they commit their winnings to NSE investment.