Kenya’s Capital Markets (Alternative Investment Funds) Regulations, 2023, should give investors confidence that, moving forward, private equity and venture capital funds will be better supervised, leading to further growth in the market, say Nelson Karumba and Clarence Dongkeng.
“We’ve had a lot of interest, from both international and local promoters, including from DFIs and pension schemes, in sponsoring funds set up in Kenya, but one of the challenges has previously been that there haven’t been regulations to give investors confidence,” explained Nelson, an associate at G&A Advocates LLP in Nairobi. “So, from a funds set-up perspective, now we finally have regulations where the Capital Markets Authority, as primary regulator, will give comfort to those wanting to invest in the alternative asset class.”
G&A Advocates is teaming up with Cameroon-headquartered Epena Law, where Clarence is an associate, to deliver a live webinar on 29 August to delve into the Alternative Investment Funds Regulations and their impact on both Kenya-based and international funds.
As an asset class, private equity and venture capital has been growing “quite a bit” in recent years in Kenya, say Nelson and Clarence, despite being largely unregulated. The webinar hosts are now keen to help educate those in funds about the changing landscape.
“While we are a commercial firm, our expertise is mostly funds, with our managing partner, Johanna Monthé, having worked in funds for 15 years in Europe, so it’s the core of what we do,” explained Clarence. She noted that, while the webinar focuses on new Kenyan regulations, Epena Law advises many international clients in relation to funds based in, or investing in, Kenya.
The AIF Regulations, which were gazetted on 25 December 2023, are designed to regulate funds that seek to pool funds from inside or outside Kenya, including debt funds, equity funds, hedge funds, property funds and infrastructure funds. They outline the different establishment structures of the funds, the steps on registration and approval, continuing obligations, and reporting requirements and procedures. “Let’s say a DFI is promoting a fund here in Kenya,” said Nelson. “What do they need to do now? That’s where we come in.”
During the live webinar on 29 August, Sylvia Kithinji, Head of Corporate Commercial at G&A Advocates, will analyse the AIF Regulations before Johanna Monthé, Managing Partner at Epena Law, discusses obligations for local and international funds with Josephine Kangonga, Senior Legal Officer at Kenya’s Capital Markets Authority. There will also be an opportunity for viewer questions.
Nelson and Clarence said anybody who works in or has an interest in funds may benefit from attending the webinar. It will help both Kenyan-based funds which need to understand the new registration and compliance requirements under the AIF Regulations, and international funds operating in Kenya which will need to understand whether and when they must register and comply with the regulations, even when capital is raised abroad.
To register for the webinar, “Kenya’s Alternative Investment Funds Regulations, 2023: Impact on Local and International Funds”, click here.
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