CMA — Capital Markets Authority
Kenya | Africa | Founded 1989
What is the CMA?
The CMA Kenya regulates the capital markets in Kenya, including securities, derivatives, and since 2017, online forex trading. Kenya was one of the first African countries to establish a formal regulatory framework for retail forex brokers. The CMA issues licences to Online Foreign Exchange Brokers and sets rules for leverage, capital requirements, and client protection.
What the CMA Does
Licenses Online Foreign Exchange Brokers operating in Kenya
Sets leverage limits — currently capped at 400:1, though the CMA has been discussing reducing this
Requires brokers to maintain a minimum paid-up capital of KES 30 million (approximately USD 230,000)
Mandates segregation of client funds from the broker's operational funds
Investigates complaints from Kenyan traders against licensed brokers
Publishes warnings about unlicensed entities targeting Kenyan traders
What the CMA Protects You From
Unlicensed forex companies operating in Kenya — the CMA regularly warns against fraudulent platforms targeting Kenyans
Misuse of client funds — segregated accounts are required
Brokers operating without adequate capital — the minimum capital requirement provides a buffer
Misleading advertising — licensed brokers must comply with CMA advertising guidelines
What the CMA Does NOT Protect You From
Trading losses — like all regulators, the CMA protects against broker misconduct, not market risk
There is no investor compensation fund — if a CMA-licensed broker goes bankrupt, there is no guaranteed payout. You rely on fund segregation and the insolvency process
Non-Kenyan residents — the CMA's complaint mechanisms and enforcement powers serve Kenyan residents. Traders from other countries have limited recourse
High leverage risks — the CMA allows up to 400:1 leverage, which is significantly higher than the 30:1 cap in Europe and Australia. This means bigger potential losses
Brokers using international entities — some brokers with CMA licences also operate through offshore entities. If your account is under the offshore entity, CMA rules may not apply
Key Requirements for CMA-Regulated Brokers
Hold a valid CMA Online Foreign Exchange Broker licence
Maintain minimum paid-up capital of KES 30 million
Segregate client funds from operational funds
Submit regular financial reports to the CMA
Comply with anti-money laundering (AML) and know-your-customer (KYC) requirements
Maintain appropriate technology and risk management systems
Investor Compensation Scheme
Kenya does not have an investor compensation fund for forex trading. If a CMA-licensed broker becomes insolvent, you must rely on the recovery of segregated funds through the legal process. This is a significant gap that Kenyan traders should be aware of.
Jurisdiction Warning
The CMA is making progress in regulating the forex industry, but Kenya's framework is still less mature than established regulators like the FCA or ASIC. The high leverage limits (400:1) are a concern — they enable bigger profits but also much bigger losses, especially for beginners.
Note for African Traders
If you are based in Kenya, always choose a CMA-licensed broker first. The protection is not as comprehensive as the FCA or CySEC, but it is far better than using an unlicensed or offshore-only broker. Verify the licence directly on the CMA website before depositing funds. Be cautious of high leverage — just because 400:1 is available does not mean you should use it.
How to Verify a Broker's CMA Licence
Go to the CMA Licensed Persons page. Look for the broker under "Online Forex Brokers" or use the search function. The list shows the company name, licence number, and status. You can also call the CMA directly on +254 20 2264900 to verify.
Open CMA Register