CMA Statement on Licensing of Standard Chartered Bank and NCBA as Corporate Trustees in Kenya

The Capital Markets Authority (CMA) has licensed three new corporate trustees to support the growing Collective Investment Schemes (CIS) market in Kenya. These trustees will provide oversight for investment vehicles such as unit trusts, mutual funds, and other collective investment structures.

The newly licensed entities are:

MTC Trust & Corporate Services Limited, which offers a broad range of fiduciary and trustee services to private entities. The firm also provides security trustee services and manages specialized structures.

Standard Chartered Bank Kenya, which has now expanded into corporate trustee services. The bank has been a major player in custody services since 2010 and currently holds the largest market share in that segment.

NCBA Group Plc, which has been licensed to offer corporate trustee services as part of its broader custody solutions. The bank aims to deepen its investment services offering by incorporating CIS trustee functions into its portfolio.

The licensing of these trustees comes at a time when demand for Collective Investment Schemes continues to rise, crossing the Ksh.400 billion mark. This is mainly driven by both retail and institutional investors seeking professionally managed, diversified investment options. Corporate trustees play a critical role in safeguarding investors' interests by ensuring that fund managers operate in compliance with scheme documents and regulatory requirements.

The move underscores CMA's commitment to strengthening investor protection and supporting the growth of a robust, transparent capital markets ecosystem in Kenya.