The Capital Markets Authority of Kenya regulates all capital markets activity in Kenya, including the Nairobi Securities Exchange, fund managers, and non-dealing online forex brokers. It was established in 1989 under the Capital Markets Act and is funded by license fees and a small levy on market transactions.
For forex traders, the CMA occupies a specific niche. It does not license forex brokers as market makers - no broker in Kenya holds a CMA license to deal in forex as principal. Instead, the CMA licenses non-dealing online forex brokers, which means the broker can introduce clients to an overseas counterparty but cannot take the other side of the trade itself. Most CMA-licensed forex firms are introducing brokers or white-label partners of larger international brokers, routing client trades to entities in Mauritius, Cyprus, or the UK.
The practical implication: a CMA license means a broker is registered to introduce forex trades in Kenya, not that it is regulated to deal in forex. Client protections are limited - there is no investor compensation fund, no statutory leverage caps, and no mandatory negative balance protection. The CMA has issued warnings against unlicensed forex firms but enforcement resources are modest. Traders should verify which offshore entity actually holds their money, because the CMA-regulated entity is usually just the marketing front.
Leverage Limits
The CMA does not impose leverage limits. Since licensed firms are non-dealing (introducing brokers), leverage is set by the overseas broker handling the trades.
| Instrument | Max Leverage |
|---|---|
| All instruments | Determined by overseas counterparty - typically 100:1 to 500:1 |
Trader Protections
- No investor compensation fund for forex traders
- No statutory leverage caps - determined by offshore broker
- No mandatory negative balance protection
- CMA-licensed brokers are non-dealing only - they cannot trade as principal
- CMA issues warnings against unlicensed firms and maintains a public register
How to Verify a License
- Visit the CMA website at cma.or.ke and navigate to the Licensed Persons section
- Search by firm name to locate their license
- Confirm the license type is 'Non-Dealing Online Foreign Exchange Broker' - not a general stockbroker license
- Check if the firm has any enforcement actions or warnings issued against it
Complaints & Disputes
Capital Markets Authority Complaints - www.cma.or.ke
The CMA accepts complaints against licensed entities and can mediate disputes. However, because licensed forex brokers are non-dealing, client funds are held offshore - the CMA has limited ability to recover funds held by overseas counterparties.
Brokers Regulated by CMA
- Pepperstone
- XM
- FXTM
- Exness
- Windsor Brokers
- HF
Frequently Asked Questions
- Does a CMA license protect my money?
- Only indirectly. CMA-licensed forex brokers are introducing brokers - they do not hold client money directly. Your funds sit with an offshore broker (often in Mauritius, Cyprus, or the UK). The CMA can pursue a licensed Kenyan entity for misconduct, but recovering funds from an overseas counterparty is difficult. Always check which entity actually holds your deposit.
- Why are CMA-licensed forex brokers all non-dealing?
- The CMA's regulatory framework does not include a license category for market-making forex brokers. All licensed forex firms operate as introducing brokers, connecting Kenyan clients to offshore dealers. This is a deliberate design choice - the CMA focuses on regulating introductions and marketing practices rather than trading operations, which fall under the overseas broker's regulator.
- Can a CMA-licensed broker offer high leverage in Kenya?
- Yes. Since the CMA does not cap leverage, and the actual trading is handled by an offshore broker, Kenyan traders can access leverage of 100:1, 200:1, or higher depending on the overseas counterparty. The CMA imposes no restrictions on this - the risk sits with the trader.