Cabinet approves reforms in Capital Markets and Agriculture regulation

Kenya’s push to strengthen investment inflows and improve agricultural regulation gained ground on Tuesday after the Cabinet endorsed key legislative changes targeting the capital markets and pest control sectors.

The Cabinet, meeting under the leadership of President William Ruto, backed amendments to the Capital Markets Act that remove restrictions on shareholder ownership in regulated institutions.

The decision is part of broader efforts to deepen financial markets and attract more investors into the sector.

Despite lifting the ownership limits, the Cabinet stressed that sound governance frameworks will remain in place to guide the operations of these institutions.

It was also agreed that the Cabinet Secretary will keep the authority to impose ownership restrictions on selected categories of financial licenses when needed.

"These amendments are not expected to have a direct financial impact on government revenue," the Cabinet said in its dispatch.

Meanwhile, a new law aimed at modernising Kenya’s pest control regulation received the Cabinet’s nod.

The Draft Pest Control Products Bill, 2024, is expected to overhaul existing laws and bring them in line with both constitutional and international benchmarks.

Once enacted, the Bill will set up the Pest Control Products Authority, which will oversee the regulation, use, and distribution of pest control products across the country.

The Cabinet noted that the law is designed to improve food safety, protect public health, safeguard the environment, and boost Kenya’s agricultural exports.