Kenya’s CMA issues fresh alert over fake forex and crypto platforms

On 8 May 2026, Kenya’s Capital Markets Authority (CMA) issued a fresh alert to investors over the rise of unlicensed forex platforms and crypto investment schemes operating in the country. 

The CMA is a government regulatory body responsible for supervising, licensing, and monitoring the activities of market intermediaries and all other individuals licensed under the Capital Markets Act.

In the notice, the CMA warned market participants against dealing with unregulated and unlicensed forex platforms and crypto investment schemes in Kenya. This notice was made due to the increasing number of fraudulent online investment schemes that have cost many Kenyans billions of shillings. 

For anyone active in Kenya's forex market or considering entering it, the Kenya CMA warning indicates where the regulatory line now sits and what traders must check before depositing funds on any platform.

The scale of online investment fraud in Kenya

As Kenya's digital economy expands, so does the number of fraudulent platforms targeting retail investors. Annual financial fraud losses in Kenya are now estimated at over 2 trillion KSh.

A TransUnion survey found that 82% of Kenyans reported being targeted by fraud through email, phone, or text. There are currently online firms that continue to solicit funds from investors while posing as regulated entities. 

Several platforms have falsely advertised guaranteed returns, low-risk investment opportunities, and automated trading systems without providing verifiable licensing information.

The Kenya CMA warning noted that some operators also impersonate legitimate financial institutions or use misleading branding to appear compliant. This has posed a challenge in distinguishing legitimate brokerages from fraudulent ones, particularly for retail traders entering the market for the first time.

Even major forex pairs such as EURUSD move with market conditions, which is why claims of guaranteed returns should be treated with caution.

What has the CMA directed market participants to do? 

The investor alert from CMA warned Kenyans that many of these companies are not registered with the CMA and are exploiting unsuspecting Kenyans on social media platforms, websites, messaging apps, and online advertisements. 

The CMA cautioned that these companies are making unrealistic promises, and those who invest money through these unlicensed platforms risk losing their entire investments. 

"No license equals no accountability," the CMA stated, emphasizing that those investors bear the full financial risk since they operate outside the protection of the Capital Markets Act. Victims of these scams have little to no hope of retrieving their money because the CMA cannot intervene or recover funds invested through unlicensed forex platforms in Kenya. 

The Kenya CMA added that investors should always verify whether investment firms, brokers, forex dealers, or online trading platforms are licensed before sending money or opening accounts.

As such, the CMA directed the public to use its official online register to confirm whether a company or dealer has been approved to operate in Kenya’s capital markets. 

The CMA warning is not limited to forex alone. It includes unregulated crypto investment schemes, unlicensed Money Market Funds (MMFs), and digital savings platforms, all of which have been used to solicit funds from Kenyan retail investors under false pretenses.

Why the Kenya CMA warning matters now

The CMA's current position reflects broader global regulatory trends. Other regulators in Europe, Asia, and Africa have also tightened their rules on trading products, crypto promotions, and retail investor advertising due to several high-profile platform scams. 

International regulators have always warned that retail investors often underestimate the risks associated with speculative trading products, particularly where leverage, volatility, or limited transparency are involved. 

As more Kenyans become involved in online trading, the government appears to be adopting a cautious attitude. The recent warning suggests that regulators may continue increasing enforcement activity against firms operating without proper authorization.

Over time, with more stringent enforcement, fraud levels would likely decrease, improving institutional confidence in Kenya’s retail trading market, but results would depend on implementation. 

Separating licensed brokers from fraudulent operators may help improve transparency standards across the crypto and forex industry. 

While the CMA's intentions are good, tighter regulation may also raise compliance costs for digital financial firms operating legally within Kenya's capital markets.

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What this means for Kenyan forex traders

The CMA's alert strengthens the regulatory direction that has been brewing for years: Kenya's retail trading market is being formalized, and participants who trade through unlicensed forex platforms in Kenya risk both financial and legal exposure.

For active market participants, the alert is a reminder to cross-reference any platform promoting unusually high or guaranteed returns against the CMA's official register. 

Also, forex and crypto platforms should ensure they hold all licenses required by the Capital Market Authority and are authorized to serve Kenyan clients. 

Platforms like Exness (KE) Limited are licensed by the Capital Markets Authority (CMA) in Kenya as a non-dealing online foreign exchange broker under license number 162. 

Conclusion 

The CMA is maintaining its regulatory stance regarding increased oversight of digital investment activities. As time passes, additional regulatory frameworks may be implemented to address emerging digital assets effectively. 

Regulators may maintain scrutiny of online financial promotions, cross-border trading services, and crypto-related investment schemes targeting Kenyan users. However, authorities remain cautious about balancing innovation with investor protection concerns.

The CMA has made clear that funds transferred to unlicensed operators fall outside the protection of the Capital Markets Act, and there is no way to hold them accountable. Market participants must always verify licensing status, avoid guaranteed-return claims, and approach unregulated online investment schemes with caution.

For traders looking to understand more about the regulatory environment, visit the Exness Blog page. For a better understanding of how global regulatory developments affect currency markets, visit Exness Insights.