The institute of Chartered Financial Analysts (CFA)Society of East Africa last week awarded only 38 Kenyans charters for 2019 out of more than 700 analysts who had enrolled for the programme and sat for their accreditation examination.
That means only 5% of the enrolled Kenyan financial analysts were awarded the charters, while the remaining 95% failed in one of the most grueling examination.
However, it was a massive improvement from 2016 when only 20 Kenyans received charters out of more than 500 analysts who sat for the exams.
In 2016, only six analysts in Tanzania, Uganda and Rwanda were awarded the charters out of 160 who were enrolled in the programme.
A chartered financial analyst is a globally-recognized professional designation awarded by CFA Institute to certify a financial analyst’s competence and integrity.
This comes on the back of rising demand for CFA charters in Kenya and East Africa. The charter is considered an asset for anyone who seeks to have an expansive career in investment management.
“Of late, we have seen a rise in demand for the programme by investment managers and financial analysts from investment companies, mutual funds, brokers’ investment banks, research analysts, financial advisers and risk managers,” said Patricia Kiwanuka, CFA East Africa president.
Although East Africans are required to attain a score of 30% in the exam to pass, it is still significantly lower compared to the worldwide pass rate of 40%. The year 2016 needed an analyst to score at least 10% to pass the exam.
Ms Kiwanuka attributes the low pass rate to the programme’s high cost and rigour.
“For one to receive a charter, one needs to commit a minimum investment of about 1,000 hours and more than Sh300,000,” she said.
The exam asks questions from a wide range of topics including ethics, financial reporting, portfolio management as well as economics.