The Capital Markets Authority of Kenya and the Australian Securities and Investments Commission have signed a co-operation agreement to promote innovation in financial services.

Signatures were put to paper during a meeting of the board of the International Organisation of Securities Commissions in Hong Kong. The parties have agreed to share information about emerging market trends and regulatory issues that spring from new software.

The head of the CMA believes that Kenya is an "innovation centre," whatever that might mean. Greg Medcraft, ASIC's chairman, has commented that innovation in financial technology is on the rise in Kenya. Like its brethren in the United Kingdom and Singapore, the Kenyan regulator is building a "regulatory sandbox structure" to encourage innovation in its capital markets. Despite its baffling name, this appears to be nothing more than a relaxation of rules that protect investors from commercial sharp practice during the crucial first months of fintech businesses' lives. Some commentators believe that these initiatives' primary function is to allow regulators, who are generally clueless about IT, to keep abreast of developments in the software marketplace.