The Kenyan Capital Markets Authority (CMA), a government financial regulatory agency that operates independently, sent our warnings to Kenyans not to engage in trading of forex with any unlicensed platforms.
Near the end of March, the Kenyan Capital Markets Authority advised Kenyans that if investing using any unlicensed platforms that they rare putting their investments at risk and will not be protected by the countries laws.
The regulator also stressed that all online money managers and FX brokers are actively doing so without a licensed and must immediately cease all operations within the country. Currently Kenya only licensed three brokers; Pepperstone Markets, SCFM Limited and Equiti Group.
The first of those licensed in Kenya was EGM Securities, it is a Equiti Group subsidiary that allows its traders to make investments in gold, oil, commodities, forex and other precious metals and commodities.
Speaking on the warning, the CEO of EGM Securities Samwel Kiraka said, “This recent warning issued by the Kenyan regulator, the Capital Markets Authority (CMA), makes their position very clear. No forex broker can legally onboard Kenyan clients into any entity without an online forex license issued by the CMA. EGM Securities fully understands the concern of the CMA, and as the first regulated broker in the Region, we will continue to serve our community.”
The Kenyan Capital Markets Authority also released a statement that stated; “The Authority will take appropriate enforcement action against any persons or entities illegally conducting online foreign exchange trade or collecting client funds in contravention of the above regulatory provisions. Members of the public who have been affected or become aware of such illegal online foreign exchange transactions are advised to report to the Authority or to the Capital Markets Fraud Investigation Unit.