The Capital Markets Authority (CMA) has raised the alarm over 15 investment platforms accused of illegally soliciting money from Kenyans, warning the public against dealing with the flagged entities.
In a notice issued on Saturday, September 12, the regulator said the platforms were offering or claiming to provide investment services without the licences and approvals required to operate in Kenya.
CMA published the names of all 15 platforms in its notice and advised Kenyans to check the full list through its official website and verified social media accounts before putting their money into investment schemes.
The platforms are linked to different types of investment products, including cryptocurrency opportunities, forex trading and Money Market Funds (MMFs).
The regulator said the entities are already facing investigations by the Directorate of Criminal Investigations (DCI), working together with CMA and other law enforcement agencies.
“The Capital Markets Authority (the Authority) wishes to caution the public against several entities purporting to offer investment services in Kenya without the requisite licensing or approval,” the regulator warned.
CMA further stated: “These entities are the subject of active investigations by the DCI in collaboration with the Capital Markets Authority and other law enforcement agencies.”
The authority urged Kenyans to stay away from the listed platforms and individuals presenting fraudulent activities as genuine investment opportunities.
Those who may have dealt with the entities or fallen victim to such schemes were encouraged to report the matter to the DCI.
The latest warning comes amid growing use of online and mobile investment platforms by Kenyans looking for ways to save, invest and earn additional income.
CMA noted that investment products such as MMFs, shares, cryptocurrency and forex trading have become increasingly accessible through mobile phones and online platforms, making it easier for investors to access such services.
However, the regulator has continued to urge investors to establish whether a platform or company has the necessary approval before sending money or taking up an investment opportunity.
CMA operates an online verification portal where members of the public can confirm whether brokers, fund managers, investment banks, investment advisers and other capital markets intermediaries are properly licensed.
The portal also provides details of approved players in various areas of the capital markets, including fund managers, stockbrokers, investment banks, investment advisers, collective investment schemes and derivatives brokers.
Investors can also use the system to check authorised securities dealers, online foreign exchange brokers, Real Estate Investment Trust (REIT) managers, corporate trustees, venture capital firms and intermediary service platform providers.
The regulator's latest action is aimed at helping Kenyans distinguish approved investment businesses from platforms operating without the required regulatory approval.