CMA Regulated Forex Brokers 2025

Interest in retail forex trading is rising in Kenya, and one of the contributing factors is that retail forex trading is not only legal in Kenya, but also well regulated, and a trader can find many different forex brokers that are authorized and licensed by the Kenyan Capital Markets Authority (CMA). This puts Kenyan retail forex traders in a good position legally.

Important: Forex trading is inherently risky. Picking a properly regulated broker can reduce the risk of your broker not honoring their obligations, but it will not make forex trading itself risk free or even low risk – no matter which trading strategy you employ. Forex trading should always be approached as a high-risk venture and traders should not risk any money that they can not afford to lose.

The best CMA Regulated Brokers 2025

The Legal Framework of Forex Trading in Kenya

Forex trading, including retail forex trading is legal and regulated in Kenya. Having a solid legal framework in place has brought better stability and safety for traders in the country, including retail forex traders, and it has also helped establish financial trading as a legitimate and viable source of income in Kenya.

The authority in charge is the Capital Markets Authority (CMA), which is a governmental financial regulatory entity under the Ministry of the National Treasury & Planning. The Capital Markets Authority (CMA) derive their powers from the Capital Markets Act of 1989. Having been active since 1990, the Kenyan Capital Markets Authority has grown to become one of the most well-known and prominent financial market regulators on the African continent.

As per Kenyan law and CMA regulations, brokers in Kenya must adhere to stringent rules put in place to protect both traders and the integrity of the markets, and the CMA has been tasked with supervising, licensing and monitoring them – just like this agency also supervise, license and monitor other market intermediaries in Kenya and the activities of the capital markets. Kenyan law has given the CMA the right and obligation to regulate and develop orderly, fair and efficient capital markets with the view to promote market integrity and investor confidence in Kenya. Among other things, the CMA issues licenses for stockbrokers, investment advisers, dealers, investment banks, fund managers, and authorized depositories.

Licensing

Several different CMA license types are available that concerns forex, including:

The the Non-Dealing Online Forex Exchange Broker License
The Dealing Online Forex Exchange Broker License

The Online Forex Exchange Money Manager License

Note: If a broker or other entity claims to be licensed by the CMA, always verify directly with the CMA before you sign up or get involved in any other way (e.g. by sharing personal data or by downloading software). It is easy for fraudsters to simply lie and claim they are CMA licensed. Therefore, traders should always verify such claims directly with the CMA.

Requirements for Forex Brokers

Kenyan law and CMA regulation includes a lot of requirements for forex brokers. Among other things, CMA licensed firms must:

• Maintain an office in Kenya
• Meet a capital requirement of 50 million Kenyan shillings
• Have a Director with sufficient financial services experience

Investor compensation

The CMA is responsible for granting compensation to investors who suffer pecuniary loss due to the failure of a licensed broker or dealer to meet its contractual obligations.

September 2023 Announcement

In September 2023, the Capital Markets Authority (CMA) released new rules directing online foreign exchange brokers to enhance disclosure mechanisms, transparency and investor protection. It was a new step in the CMA´s ongoing work to mitigate the risks for Forex CFD traders in Kenya. The CMA is working with CMA licensed brokers to ensure disclosures and to put together a major investor education program.

In a press release, the CMA Chief Executive Officer, Wyckliffe Shamiah, revealed that the CMA had facilitated the creation of a Technical Working Group to assess the state of the market and propose recommendations to mitigate challenges for traders, investors, and licensed players. Among others, the Technical Working Group includes representatives for peer regulators and CMA licensed online foreign trading brokers. Examples of peer regulators in Kenya are the Central Bank, the Communications Authority, and the Financial Reporting Centre.

Contact information for the CMA

• Embankment Plaza, 3rd Floor Longonot Road, off Kilimanjaro Avenue, Upperhill P.O Box 74800 – 00200 Nairobi, Kenya
• Email address: corporate@cma.or.ke
• Phone numbers: +254 20 2264000, +254 20 2264900, +254 20 2221869, +254 722 207767

Advantages of using a broker licensed by the CMA

Recourse

When a broker is licensed by the CMA, you can report complaints directly to the CMA and they can open an investigation. This is typically easier than having to take on a standard civil court case as your first step of action against a misbehaving broker.

If it is a case of actual fraud instead of a simple license violation or disagreement, it can of course also be reported directly to the Kenyan police. However, many traders still prefer to contact the CMA first, as they know they will be able to quickly reach someone who has a lot of knowledge about the intricacies of the financial markets and can understand the situation right away.

Jurisdiction

When a trader in Kenya uses a broker that is regulated and licensed by Kenyan authorities, the question of jurisdiction and authority is pretty clear-cut. If a trader in Kenya instead if using a broker that is headquartered and registered in Costa Rica, licensed by the Seychelles, and with its management team and assets sitting in Russia, the situation immediately becomes more complex from a legal perspective and it can be difficult for any national authority to fully handle the situation.

Dispute Mediation

When a trader can not resolve an issue directly with a CMA-licensed broker, he or she can contact the CMA and ask for help with dispute mediation. In many cases, the CMA will be able to help resolve the issue, thus preventing escalation. For traders who want a quick and smooth fix, this can be very important, as a retail trader may not have enough time and resources to be tied up with a slow-moving legal case.

Brokers that are not licensed by the CMA are typically not interested in participating in dispute mediation arranged by the CMA.

The Investor Compensation Program

In Kenya, the CMA is responsible for granting compensation to investors who suffer pecuniary loss due to the failure of a CMA licensed broker or dealer to meet its contractual obligations. This investor compensation scheme is only available when you use a broker licensed by the CMA.

The Money Segregation Requirement

The CMA require brokers to keep client money completely segregated form company money. Segregation prevents the muddling of account keeping and ownership status, and if the company becomes insolvent, the client funds can be paid back to the clients directly, as this money has never been mixed up with the company´s money.

When a broker is not required to segregate company money from client money, every creditor – e.g. contractors, vendors, money lenders, etc. – can demand that that any money found in the company´s possession is used to pay back all claimants equally. This usually makes it impossible for clients to get their money back in full, as all the money in the company´s posses goes into the general bankruptcy case.

As you can see, it is very important to use a broker that is obligated to keep client funds segregated, and that is licensed by a strict financial authority that makes sure that this rule is actually adhered to.

Rules That Promotes Transparency and Fair Trading Conditions

The CMA has a lot of rules and mandatory routines in place to promote transparency and fair trading conditions. This includes, but is not limited to, rules pertaining to book keeping and auditing, and obligatory reporting to the CMA.

Supervision

The CMA has far-reaching legal rights to supervise and investigate brokers operating with a CMA license.

Focus on Kenya (International Brokers)

When an international broker goes through all the steps required to set up business in Kenya and obtain a CMA license, it is an indication of several things:

• They care about following national law in this respect, which makes them more likely to be upstanding in other ways.
• They have committed to following the rules and regulations that Kenyan traders are used to.
• They are dedicated to being present on the Kenyan market, which typically means several good things for Kenyan traders, such as a good selection of trading opportunities involving the Kenyan shilling. The broker is also more likely to accept transaction methods that are popular in Kenya, e.g. M-Pesa, and give traders the option of opening a trading account denominated in Kenyan shillings.

Taxes

As we are talking about the legal framework for forex trading in Kenya, I would also like to remind current and prospective forex traders about the importance of adhering to the Kenyan rules of taxation. By knowing the rules and planning in advance, you can make sure you file and pay taxes correctly, and avoid paying more than necessary or getting slapped with a fine for not complying with Kenyan tax law. More information can be obtained from the Kenya Revenue Authority (KRA).

A Warning About Identity Theft

It is easy to fall into the trap of thinking that you can not lose more than your deposit. After all, is going with a non-regulated broker really that dangerous, if I only make a $5 deposit? If they run away with my money, I´ve only lost $5.

The problem with this thinking is that not all fraudsters are after your first deposit. Some will not reveal their scammy nature until you have deposited more money, and there are also those who will convince you to install software (e.g. seemingly legit trading software) on your computer or phone – software which is then utilized for their scam.

A growing problem is also fraudsters pretending to be brokers in order to carry out identity theft. Legitimate brokers are required to demand a lot of information from you to verify your identity and comply with rules that have been put in place to combat fraud, money laundering, terror financing, etcetera. Regrettably, fraudsters are of course aware of this, and they know that if they manage to convince traders that they are brokers, those traders will send them copies of their national ID cards, copies of passport information, copies of utility bills, and more. Then, the scammers can turn around and use this information for identity theft. You may be the target – or the scammer may use your information to scam someone else. After all, all the information you are using to verify your identity and residency can be used by someone else, someone claiming to be you, and you may find yourself embroiled in a police investigation where you are being suspected of scamming someone.

As you can see, the risk of using non-regulated brokers is not limited to losing your first deposit.

Commonly Asked Questions

Does the CMA keep a public list of licenses?

Yes, and you can find it here:

https://licensees.cma.or.ke

What is M-Pesa?

M-Pesa is a mobile banking service. It was launched back in 2007 and is today very popular banking solution in Kenya. Therefore, many brokers that are eager to grow on the Kenyan market will accept deposits and withdrawal through M-Pesa (alongside other options).

M-Pesa was developed and launched by Safaricom, one of the main mobile phone operators in Kenya.

The bank accounts are re-insured up to 100,000 KES by the Deposit Protection Fund.

Are Forex CFDs available in Kenya?

Yes, Contracts for Difference (CFDs) based on currency exchange-rates are available for traders in Kenya. When you are using an CFD to speculate on forex, your broker is also your counterpart. This creates a conflict of interest, and makes it even more important to pick a properly regulated and reputable broker.

Forex CFDs are typically offered with leverage. Using leverage will amplify both profits and losses. It is important to not use leverage before you know exactly how it works and how to adjust your risk-management plan accordingly.