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AEC 2008 - Microstructure elements of the Bonds Market in Kenya
Mobilizing long term capital is a challenge in Africa with small capita market. Although the evidence that long term finance influences economic growth saw a wave of capital market reform in Mid-1990s, stock markets are yet to make significant contribution to growth financing. Majority of the bonds market are in their infant stage offering minimal alternative source of financing. Kenya’s experience is no exceptional. It has a youthful bonds market with handful corporate bonds listed and yet to evolve long term maturity. With the emphasis on private-sector led growth and the increasing focus on PPP as an alternative to providing public services, it means that developing the capital market is very vital.