CMA licenses new intermediaries in push to widen Kenya’s investment options

The Capital Markets Authority (CMA) has approved a new batch of market intermediaries in a move aimed at widening investment choices for Kenyans, boosting competition, and deepening the country’s capital markets.

The approvals, which were announced on Wednesday, bring new players into investment banking, stockbroking, advisory services, and digital investment platforms, expanding the range of regulated firms available to retail, institutional, diaspora, and high-net-worth investors.

At the centre of the approvals is Rock Advisors Limited, which has been upgraded from an investment adviser to a fully licensed investment bank.

The move allows the firm to go beyond advice and offer services such as market research, wealth management, and proprietary trading.

For investors, this signals growing confidence by the CMA in local firms to handle more complex financial activities under strict regulatory oversight.

Green Margin Capital Limited has also entered the market as a licensed stockbroker. The firm describes itself as technology-driven and focused on lowering barriers to entry for investors who have traditionally stayed away from the Nairobi Securities Exchange (NSE).

With retail participation in capital markets still relatively low, the CMA appears keen to support intermediaries that combine digital tools, research, and investor education.

Beyond trading and banking, the CMA has strengthened the advisory side of the market by licensing three new investment advisers.

Zamara Actuaries, Administrators and Consultants Limited, already regulated by the Retirement Benefits Authority and the Insurance Regulatory Authority, will now extend its services into capital markets advice.

This positions Zamara to offer more integrated financial solutions, especially for pension schemes and institutional investors.

Arion Capital Limited received approval to provide tailored advisory services to corporates and high-net-worth individuals, with a stated focus on aligning financial returns with social and environmental goals. Horizon Africa Capital Limited, a boutique firm specialising in mergers and acquisitions and capital raising, was also licensed, adding capacity in corporate finance and strategic advisory services.

In addition, the CMA granted I&M Capital Limited an Intermediary Service Platform Provider (ISPP) licence. As a subsidiary of I&M Group PLC and an existing fund manager, the firm will now be able to operate digital platforms that distribute regulated investment products such as unit trusts and government securities.

This licence category is increasingly important as more Kenyans turn to mobile and online platforms to manage their money.

According to the CMA, the approvals are part of a broader strategy to build a “well-regulated, inclusive, and dynamic” capital markets ecosystem that responds to changing investor needs while supporting economic growth.

In practical terms, this means more licensed firms, more product choice, and more competition, while keeping investor protection at the centre.

For ordinary investors, the significance of the CMA’s move lies less in the technical licences and more in what they enable.

More intermediaries mean more ways to invest, potentially lower costs, and better access to information and advice.

For businesses, especially small and medium-sized enterprises, a deeper capital market can translate into more options for raising funds beyond bank loans.

The approvals also come at a time when Kenya’s capital markets are searching for fresh momentum.

The NSE has faced periods of low activity, foreign investor outflows, and limited new listings.

By encouraging new intermediaries and business models, the CMA is signalling that growth will come not only from new products, but also from modernising how investors interact with the market.

This regulatory push fits into a wider trend. Just a day earlier, the CMA approved new fund management licences and additional collective investment schemes, allowing firms to launch multi-asset and offshore-focused funds. Together, these decisions point to a regulator that is actively reshaping the market rather than simply policing it.

The CMA has stressed that all newly licensed firms will operate under full regulatory supervision, with strict requirements on governance, capital adequacy, and disclosure. This balance, encouraging innovation while maintaining tight oversight, is critical in a market where investor confidence has been shaken in the past by failures and misconduct.

As Kenya’s financial landscape evolves, the CMA’s latest approvals highlight a clear direction: broader participation, stronger institutions, and a capital market that works for more than just a small segment of the population.

Whether this translates into higher investor participation and deeper liquidity will depend on how effectively the new intermediaries deliver on their promises, but the regulatory door is now firmly open.

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