The Capital Markets Authority (CMA) has cautioned Kenyans against investing in unlicensed firms and online schemes involved in activities such as share trading, forex platforms, and Money Market Funds (MMFs), citing rising cases of fraud and financial losses.
In an investor alert issued on Friday, May 8, the regulator warned that many unregulated entities are using social media, messaging apps, websites, and online trading platforms to lure the public with promises of unusually high returns.
According to the CMA, such schemes often collapse or disappear with investors’ money, leaving victims without legal protection or recovery options. The authority noted that it has no mandate to intervene or recover funds invested through unlicensed operators.
“No license equals no accountability,” the CMA said in its notice, stressing that investors bear full responsibility when dealing with unregulated firms.
The regulator urged the public to verify the licensing status of any investment firm, broker, forex dealer, or online trading platform before committing funds. It advised Kenyans to use its official register to confirm whether a company is approved to operate in the capital markets.
The warning comes amid growing concerns over the rise of fraudulent online investment platforms promising quick profits through forex trading, cryptocurrency schemes, and digital savings products.
In recent years, several Kenyans have reported losing large sums of money to pyramid schemes and fake investment applications that later collapsed or vanished with client funds.
The CMA said increased vigilance is necessary as fraudsters continue to exploit digital platforms to target unsuspecting investors seeking fast financial gains.
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