Financial and Business News

Kenya’s CMA Widens Regulatory Net With Robo-Advisory Permits

Monday, 02/03/2026 | 14:37 GMT by Jared Kirui
  • The regulator has introduced a new license category for online investment apps.
  • CMA recently licensed Capital.com and XM, expanding its list of regulated CFD brokers.
Nairobi city skyline, source: Shutterstock
Nairobi city skyline, source: Shutterstock

Kenya’s Capital Markets Authority (CMA) has moved to bring robo-advisors and digital investment platforms into its licensing framework, responding to a surge in app-based trading among young and tech-savvy Kenyans.

The proposed CMA's licensing requirements for 2025 aim to formalize how these firms operate and interact with investors, local media Daily Nation mentioned.

While the new permits don’t rewrite the license conditions for FX and CFD brokers, they tighten the digital environment those firms operate in by putting intermediary apps and robo-advisers under direct CMA oversight.

It raises the bar for how advice-like tools and portfolio-style features are framed, and force many online platforms that funnel young traders into trading platforms to meet licensing.

Nairobi to License Robo-Advisors

Under the draft regulations, the CMA expands the definition of an investment advisor to cover digital platforms that provide automated, algorithm-driven investment advice with minimal human input.

Robo-advisors use algorithms to construct and manage investment portfolios, usually at relatively low cost, and they appeal to youthful and passive investors who prefer simple digital tools.

Read more: Capital.com Enters Kenya, Gains Local Licenses and Appoints CEO

Additionally, the Kenyan regulator has proposed a new license category for “intermediary service platform providers.” These are operators of digital applications that aggregate, market and distribute capital markets products and services, including many web- and mobile-based providers that currently rely on partnerships with existing licensees.

Entities that already hold a CMA license will not need to obtain this intermediary service platform license for the same activities. Over-the-counter platforms will also have to obtain CMA licenses under the new framework. In addition, the 2025 Regulations outline licensing requirements for trustees and custodians.

New FX licenses Widen CMA’s Reach

CMA’s recent approval of Capital.com and XM as online forex brokers adds two global names to Kenya’s pool of licensed FX and CFD providers and highlighted the evolving regulations with cross-border trading platforms. Capital.com received authorization in January to operate as a Dealing Online Foreign Exchange Broker, with responsibility for onboarding clients, executing trades and offering local support under CMA rules.

XM followed last month with a CMA license that allows it to serve Kenyan traders via its local domain under the regulator’s oversight. These approvals come as Kenya’s FX and CFD market continues to shift from largely offshore activity to a more formal, onshore model anchored on CMA-supervised firms.

Earlier licenses for brands such as Exness, IC Markets, FP Markets and FXPesa have enabled global brokers to localize operations while meeting capital, conduct and disclosure requirements.

For Kenya’s broader capital markets, the expansion of the CMA-regulated FX list aligns with parallel reforms to license digital advisory platforms and online intermediaries, aiming to bring more online trading channels under direct supervision.

Kenya’s Capital Markets Authority (CMA) has moved to bring robo-advisors and digital investment platforms into its licensing framework, responding to a surge in app-based trading among young and tech-savvy Kenyans.

The proposed CMA's licensing requirements for 2025 aim to formalize how these firms operate and interact with investors, local media Daily Nation mentioned.

While the new permits don’t rewrite the license conditions for FX and CFD brokers, they tighten the digital environment those firms operate in by putting intermediary apps and robo-advisers under direct CMA oversight.

It raises the bar for how advice-like tools and portfolio-style features are framed, and force many online platforms that funnel young traders into trading platforms to meet licensing.

Nairobi to License Robo-Advisors

Under the draft regulations, the CMA expands the definition of an investment advisor to cover digital platforms that provide automated, algorithm-driven investment advice with minimal human input.

Robo-advisors use algorithms to construct and manage investment portfolios, usually at relatively low cost, and they appeal to youthful and passive investors who prefer simple digital tools.

Read more: Capital.com Enters Kenya, Gains Local Licenses and Appoints CEO

Additionally, the Kenyan regulator has proposed a new license category for “intermediary service platform providers.” These are operators of digital applications that aggregate, market and distribute capital markets products and services, including many web- and mobile-based providers that currently rely on partnerships with existing licensees.

Entities that already hold a CMA license will not need to obtain this intermediary service platform license for the same activities. Over-the-counter platforms will also have to obtain CMA licenses under the new framework. In addition, the 2025 Regulations outline licensing requirements for trustees and custodians.

New FX licenses Widen CMA’s Reach

CMA’s recent approval of Capital.com and XM as online forex brokers adds two global names to Kenya’s pool of licensed FX and CFD providers and highlighted the evolving regulations with cross-border trading platforms. Capital.com received authorization in January to operate as a Dealing Online Foreign Exchange Broker, with responsibility for onboarding clients, executing trades and offering local support under CMA rules.

XM followed last month with a CMA license that allows it to serve Kenyan traders via its local domain under the regulator’s oversight. These approvals come as Kenya’s FX and CFD market continues to shift from largely offshore activity to a more formal, onshore model anchored on CMA-supervised firms.

Earlier licenses for brands such as Exness, IC Markets, FP Markets and FXPesa have enabled global brokers to localize operations while meeting capital, conduct and disclosure requirements.

For Kenya’s broader capital markets, the expansion of the CMA-regulated FX list aligns with parallel reforms to license digital advisory platforms and online intermediaries, aiming to bring more online trading channels under direct supervision.

Topics
Kenya
About the Author: Jared Kirui
Jared Kirui
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Jared is an experienced financial journalist passionate about all things forex and CFDs.

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