The Capital Markets Authority (CMA) has issued a warning to Kenyans over 15 investment platforms accused of operating illegally and fraudulently soliciting funds from members of the public.
In a notice issued on Saturday, September 12, the regulator said the entities were offering, or claiming to offer, investment services without obtaining the necessary licences and approvals.
CMA published the names of all 15 flagged platforms, with the public able to access the full list through the regulator's official website, cma.or.ke, and its verified social media accounts.
Some of the platforms are alleged to have promoted cryptocurrency investment opportunities, while others marketed services related to forex trading and Money Market Funds (MMFs).
“The Capital Markets Authority (the Authority) wishes to caution the public against several entities purporting to offer investment services in Kenya without the requisite licensing or approval,” the regulator warned.
According to CMA, the entities have been placed under active investigation by the Directorate of Criminal Investigations (DCI), working alongside the Authority and other law enforcement agencies.
“These entities are the subject of active investigations by the DCI in collaboration with the Capital Markets Authority and other law enforcement agencies,” CMA added.
The regulator urged Kenyans to avoid dealing with the listed entities or individuals who may be disguising fraudulent schemes as legitimate investment opportunities. It also called on affected members of the public to report such cases to the DCI.
A spot check by Vantage Ke established that most of the platforms listed by the regulator had previously attracted government attention over allegations that they were purporting to offer Money Market Funds, cryptocurrency investments, forex trading and other financial services.
The latest warning comes at a time when digital investment platforms are increasingly attracting Kenyans looking for alternative ways to grow their savings and earn additional income.
Investment options such as MMFs, shares, cryptocurrency and forex trading have become more popular, largely due to the convenience of accessing financial services through mobile phones and online platforms.
To help investors avoid unlicensed operators, CMA operates an online verification portal that allows members of the public to confirm whether brokers, fund managers, investment banks, investment advisers and other capital markets intermediaries are properly licensed before committing their money.
The portal also provides details on approved players in various categories, including fund managers, stockbrokers, investment banks, investment advisers, collective investment schemes and derivatives brokers.
Other authorised entities listed on the platform include securities dealers, online foreign exchange brokers, REIT managers, corporate trustees, venture capital firms and intermediary service platform providers.
