Kenya’s capital markets regulator has issued a fresh warning against 15 investment platforms accused of operating without the required licences, amid growing concerns over fraudulent schemes targeting Kenyans online.
The Capital Markets Authority (CMA) has cautioned members of the public against dealing with a list of 15 entities allegedly offering or purporting to offer investment services without the necessary regulatory approvals.
In a notice dated Saturday, September 12, the regulator said some of the platforms had been using investment opportunities to solicit money from members of the public despite lacking the licences required to operate in Kenya.
“The Capital Markets Authority wishes to caution the public against several entities purporting to offer investment services in Kenya without the requisite licensing or approval,” the regulator said.
15 Platforms Under the Spotlight
The flagged entities are linked to different investment products and services, with some allegedly marketing opportunities involving cryptocurrency, forex trading and money market funds (MMFs).
The warning comes at a time when digital investment platforms have become increasingly popular among Kenyans looking for alternative ways to save, invest and generate additional income.
With investment services now easily accessible through mobile phones and social media, regulators have faced growing challenges in distinguishing legitimate platforms from schemes designed to defraud unsuspecting investors.
DCI Joins Investigation
The CMA said the entities named in its latest notice are already the subject of investigations by the Directorate of Criminal Investigations (DCI).
The investigations are being conducted jointly with the CMA and other law enforcement agencies as authorities seek to establish how the platforms operated and whether members of the public lost money through them.
The regulator urged anyone who may have fallen victim to the schemes to report the matter to the DCI.
CMA also warned Kenyans against individuals who disguise fraudulent activities as legitimate investment opportunities.
Fake MMFs, Crypto and Forex Schemes Raise Alarm
The latest warning highlights the growing risks associated with unregulated online investment platforms.
Money market funds, cryptocurrency and forex trading have gained significant attention in Kenya, partly because investors can access many services remotely without visiting a physical office.
However, the ease of access has also created opportunities for fraudsters to present themselves as licensed investment professionals.
Some schemes allegedly promise unusually high returns, encourage investors to recruit others or use professional-looking websites and social media pages to create an impression of legitimacy
How Kenyans Can Check an Investment Platform
The CMA operates an online verification system that allows investors to establish whether a company or individual is authorised to provide specific capital markets services before committing their money.
The regulator’s database provides information on licensed fund managers, stockbrokers, investment banks, investment advisers, collective investment schemes and derivatives brokers, among other regulated entities.
It also covers authorised securities dealers, online foreign exchange brokers, REIT managers, corporate trustees, venture capital firms and intermediary service platform providers.
Investors are therefore encouraged to verify a platform’s regulatory status before depositing money, particularly where the investment opportunity is promoted through social media, WhatsApp groups or other online channels.
CMA’s Warning to Investors
The latest crackdown serves as another reminder that a professional-looking investment website or claims of guaranteed profits do not necessarily mean that a platform is legitimate.
For Kenyans looking to invest, the regulator’s message is straightforward: check first, invest later.
With investigations into the 15 flagged platforms continuing, authorities are expected to establish whether investors were defrauded and determine what further action should be taken against those behind the schemes.
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