I will say a few words about each of these. The first priority is to improve transparency. Many highly structured products at the centre of the turmoil were far from transparent, and the disclosure by their originators was often wanting. The substitution of credit ratings for adequate transparency promoted herding upon downgrades and common valuation errors across a range of asset classes.
Unfortunately this growth has not come without challenges ranging from payments, settlements, investors’ returns to safety of investors’ assets to the stock exchange, brokers, Capital Markets Authority. Despite these challenges it is gratifying to note the significant growth in the Fixed Income segment of the Nairobi Stock Exchange and the vibrancy we have seen of the capital markets in general.