The 26th edition of the Capital Markets Soundness Report covers developments and emerging trends in the first quarter of the year 2023. This report analyses the soundness of the Kenyan capital markets as influenced by global, regional, domestic, political, and socio economic developments. The global economy continued to struggle from the escalating Russia-Ukraine crisis, uncertainty on interest rate hikes across the developed world in 2023, and most recently, the fears of a global banking crisis following the collapse of Silicon Valley and Credit Suisse Banks. With the fears of a global recession fading, the Organization for Economic Co-operation and Development (OECD, Interim Report March 2023) noted that with the downside risks, the world’s economic growth is projected to remain at 2.6% and 2.9% in 2023 and 2024.