Disclosure Problem In Securities Regulation In Kenya

Abstract

This research was premised on the notion that mandatory disclosure can hinder growth of securities markets if it is not designed and implemented appropriately. This research therefore set out to establish how the legal framework providing for mandatory disclosure can be redesigned, refined and applied suitably with a view to maximizing benefits of mandatory disclosure. This study utilized qualitative research methodology to evaluate the successes and failures associated with the disclosure regime in Kenya. This study also used comparative methods of inquiry by considering the experiences of the US in applying the disclosure principle to securities regulation thus providing useful insights for Kenya in designing a suitable disclosure framework to achieve the economic objective of growth and development of her securities markets. The study reveals the shortcomings of Kenya’s disclosure framework and makes recommendations on how the framework can be improved to promote the development of the securities markets to meet Kenya’s economic growth aspirations.