Capital Markets Authority Accelerates Financial Sector Growth with New Licenses

The Capital Markets Authority (CMA) has embarked on an ambitious expansion of Kenya’s financial sector, licensing four new players in a move designed to deepen the country’s capital markets and enhance investment opportunities for both institutional and retail investors. The comprehensive licensing spree represents one of the most significant regulatory developments in Kenya’s financial sector this year.

The newly licensed entities – TPXM Global Kenya Limited, Point Forty Investment Advisory Limited, Silverhouse Capital Limited, and Enwealth Impact Debt Fund Limited – join an increasingly sophisticated financial ecosystem that has seen remarkable growth in recent months. This latest round of approvals follows the CMA’s decision to license Kenya Climate Ventures Limited and EDC Asset Management (Kenya) Limited as fund managers, bringing the total number of licensed fund managers to 47.

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Fund Management Sector Reaches New Heights

The expansion of Kenya’s fund management sector represents a significant milestone in the country’s financial development. With assets under management in Collective Investment Schemes rising to Ksh596 billion as of June 30, 2025, the sector demonstrates growing investor confidence and market sophistication.

This represents substantial growth from earlier in the year when Kenya had 45 licensed fund managers as of May 2025. The rapid increase reflects what CMA attributes to “growing demand for professional wealth and asset management services in the country.”

Kenya Climate Ventures Limited focuses on providing both financial and technical assistance to gender-inclusive, climate-smart enterprises. The company aims to establish and manage specialized Climate Impact Funds to accelerate investments in projects that promote gender inclusivity, climate change adaptation, and mitigation – aligning with global trends toward ESG (Environmental, Social, and Governance) investing.

EDC Asset Management (Kenya) Limited has been licensed to offer comprehensive fund management, investment advisory, and segregated portfolio management services, expanding the range of sophisticated financial services available to Kenyan investors.

Diverse New Market Participants

The four newly licensed entities bring specialized capabilities to Kenya’s capital markets:

TPXM Global Kenya Limited: Online Trading Revolution

TPXM Global Kenya Limited has been cleared as a non-dealing online foreign exchange broker, authorized to provide online trading services in foreign exchange, commodities, equities, and contracts for differences (CFDs) on underlying assets. This licensing represents a significant step toward democratizing access to global financial markets for Kenyan investors.

The company’s approval comes at a time when Kenya’s retail investment sector is experiencing unprecedented growth, with digital platforms increasingly becoming the preferred channel for market access. The authorization to offer CFD trading provides Kenyan investors with access to sophisticated financial instruments previously available primarily through international brokers.

Point Forty Investment Advisory Limited: Comprehensive Investment Solutions

Licensed as an Authorized Securities Dealer (ASD), Point Forty Investment Advisory Limited will offer bespoke investment solutions across government securities (Treasury bonds and bills) and listed equities on the Nairobi Securities Exchange. The company specifically targets institutional, high-net-worth, and retail investors, providing tailored strategies across different market segments.

This licensing is particularly significant given the NSE’s recent performance, with Kenya’s main stock index experiencing substantial volatility and growth opportunities. The NSE 20 index has shown remarkable recovery, climbing significantly over the past year, creating opportunities for skilled investment advisors.

Silverhouse Capital Limited: Investment Advisory Excellence

Silverhouse Capital Limited’s approval as an investment adviser expands the pool of professional advisory services available to Kenyan investors. The company joins a growing ecosystem of investment advisors focused on providing sophisticated portfolio management and strategic financial guidance.

Enwealth Impact Debt Fund Limited: Alternative Investment Focus

Licensed as an Alternative Investment Fund (AIF), Enwealth Impact Debt Fund Limited introduces specialized debt investment capabilities to Kenya’s market. Alternative investment funds represent a growing segment globally, offering investors exposure to non-traditional asset classes and investment strategies.

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Additional Strategic Approvals

Beyond the headline licensing announcements, CMA has approved several other significant market developments:

Etica Capital Limited received approval to register the Etica Special Multi-Asset Fund (KES) under its unit trust products, expanding the range of multi-asset investment options available to Kenyan investors.

Acorn Build-to-Rent Development Real Estate Investment Trust (D-REIT), managed by Acorn Investment Management Limited, received approval to grow the affordable rental housing market by enabling investors to participate in large-scale, professionally managed rental property developments.

Myxeno Investment Management Limited was also granted approval, further broadening the investment management landscape in Kenya.

Digital Innovation in Capital Markets

The CMA’s commitment to financial innovation was further demonstrated through the approval of Sycamore Capital Limited’s Cashlet App, which received authorization to connect retail investors with licensed fund managers investing in Collective Investment Schemes (CIS).

The Cashlet App’s approval follows its successful testing in the CMA Sandbox since July 9, 2021, where it operated as a fully digital platform designed to aggregate retail investors and enable seamless investments into multiple unit trusts. This approval represents a significant milestone in Kenya’s fintech evolution, demonstrating the regulator’s commitment to supporting homegrown innovations that expand market participation.

Additionally, CMA licensed Jipay Payment Solutions Limited as an Intermediary Service Platform Provider (ISPP), strengthening digital innovation and financial inclusion in Kenya’s capital markets. The firm allows subscribers to automate savings, focusing on promoting resilience and long-term wealth creation among underserved populations.

Regulatory Framework and Market Development

CMA CEO Wyckliffe Shamiah has emphasized the importance of collective investment schemes as “significant vehicles through which retail investors can easily participate in the capital markets, noting their ability to facilitate growth of customer base and democratization of wealth.”

The Authority projects that the value of assets under management will grow by nine percent in 2025, up from the three percent growth recorded in 2022, driven by the strong value proposition of investment vehicles and growing market confidence.

Since 2020, the CMA has licensed 22 new fund managers, demonstrating sustained market interest and the authority’s commitment to expanding the financial services sector. This growth trajectory reflects several key trends:

Increasing Financial Literacy: Growing awareness among Kenyan investors about the benefits of professional asset management Regulatory Confidence: Clear and supportive regulatory framework encouraging new market entrants Economic Growth: Kenya’s strong economic fundamentals supporting capital market development Digital Innovation: Technology-driven solutions making investment more accessible

Impact on Kenya’s Capital Markets Ecosystem

The expansion of licensed financial services providers has several significant implications for Kenya’s capital markets:

Enhanced Competition and Innovation

The entry of new players increases competition among financial services providers, potentially leading to better products, lower fees, and improved customer service. The diversity of new entrants – from online trading platforms to specialized investment funds – ensures competition across multiple market segments.

Improved Market Access

The licensing of online trading platforms and digital investment solutions significantly improves market access for retail investors. TPXM Global Kenya Limited’s authorization to provide online trading services in multiple asset classes opens new investment avenues previously unavailable to Kenyan investors.

Professional Asset Management Growth

The expansion to 47 licensed fund managers creates a more robust asset management ecosystem, providing investors with diverse options for professional portfolio management. This growth supports the development of more sophisticated investment strategies and products.

Real Estate Investment Evolution

The approval of Acorn Build-to-Rent D-REIT represents an innovative approach to real estate investment, combining traditional property investment with professional management and social impact through affordable housing provision.

Market Performance Context

These licensing developments occur against the backdrop of a dynamic Kenyan capital market environment. The Nairobi Securities Exchange has experienced significant volatility and growth in 2025, with the NSE 20 index showing strong performance over the past year.

Recent trading data shows continued market activity, with daily trading volumes often exceeding 18 million shares in multiple thousand deals. The current market capitalization of approximately KES 2.73 trillion demonstrates the substantial scale of Kenya’s equity markets.

Key market indicators include:

• Active participation from both institutional and retail investors
• Growing dividend yields from established companies
• Increased interest in ESG-focused investments
• Technology sector growth driving innovation investments

Regulatory Excellence and International Recognition

The CMA’s proactive approach to market development has positioned Kenya as a leading capital market in the East African region. The authority’s mandate includes licensing and supervising all capital market intermediaries, ensuring compliance with legal and regulatory frameworks, and promoting market development through research on new products and services.

The regulatory functions encompass:

• Licensing and supervising capital market intermediaries
• Ensuring compliance with legal and regulatory frameworks
• Regulating public offers of securities and capital market products
• Promoting market development through research and innovation
• Enhancing investor education and public awareness
• Protecting investor interests

Future Growth Projections

The CMA’s aggressive licensing strategy supports several long-term objectives for Kenya’s capital markets:

Market Depth and Liquidity

Increasing the number of market participants improves market depth and liquidity, making it easier for investors to buy and sell securities efficiently. This enhanced liquidity reduces transaction costs and improves price discovery mechanisms.

Product Diversification

The approval of alternative investment funds, real estate investment trusts, and specialized advisory services creates a more diverse product ecosystem, allowing investors to build more sophisticated and risk-adjusted portfolios.

Financial Inclusion

Digital platforms like the Cashlet App and automated savings solutions from companies like Jipay Payment Solutions extend market access to previously underserved populations, supporting broader financial inclusion objectives.

International Integration

The licensing of global trading platforms and international fund management companies facilitates greater integration between Kenya’s capital markets and global financial systems, providing local investors with international exposure while attracting foreign investment.

Challenges and Opportunities

While the expansion of licensed financial services providers presents significant opportunities, it also creates challenges that require careful management:

Regulatory Oversight

The increasing number of market participants requires enhanced regulatory supervision to ensure compliance, protect investors, and maintain market integrity. The CMA must balance promoting innovation with maintaining appropriate oversight.

Market Education

The introduction of sophisticated financial products requires corresponding improvements in investor education to ensure market participants understand the risks and benefits of various investment options.

Technology Infrastructure

The growth of digital financial services requires robust technological infrastructure and cybersecurity measures to protect investor assets and personal information.

Competition Management

Increased competition among financial services providers, while generally beneficial, requires careful monitoring to prevent predatory practices and ensure fair market conditions.

Economic Impact and Development Goals

The expansion of Kenya’s capital markets aligns with broader economic development objectives:

Capital Formation

A more developed capital market facilitates efficient capital allocation, supporting economic growth by directing savings toward productive investments.

Private Sector Development

Enhanced access to capital markets enables private sector growth by providing businesses with alternative funding sources beyond traditional bank lending.

Job Creation

The growth of the financial services sector creates employment opportunities both directly within financial institutions and indirectly through increased economic activity.

Economic Diversification

A sophisticated capital market supports economic diversification by enabling investment across multiple sectors and asset classes.

Conclusion: A Transformative Period

The Capital Markets Authority’s recent licensing decisions represent a transformative period for Kenya’s financial sector. The approval of seven new entities across diverse financial services categories demonstrates the regulator’s commitment to market development and innovation.

With fund managers now numbering 47 and assets under management reaching Ksh596 billion, Kenya’s capital markets are experiencing unprecedented growth and sophistication. The introduction of online trading platforms, specialized investment funds, real estate investment trusts, and digital investment solutions creates a more inclusive and accessible financial ecosystem.

The strategic focus on both traditional and innovative financial services providers ensures that Kenya’s capital markets can serve the diverse needs of different investor categories while maintaining appropriate regulatory oversight and investor protection.

As these newly licensed entities begin operations, they will contribute to increased market competition, product innovation, and financial inclusion. The combined effect of these developments positions Kenya’s capital markets for sustained growth and enhanced regional leadership.

For investors, these developments translate into greater choice, improved access, and more sophisticated investment opportunities. For the broader economy, the enhanced capital market infrastructure supports long-term growth objectives through improved capital allocation and increased financial sector efficiency.

The CMA’s proactive approach to market development, demonstrated through this comprehensive licensing initiative, reinforces Kenya’s position as a leading capital market in the East African region and creates a strong foundation for future growth and development.

This expansion of Kenya’s financial services sector reflects the country’s commitment to becoming a regional financial hub while ensuring appropriate regulatory oversight and investor protection.

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By: Montel Kamau

Serrari Financial Analyst

24th September, 2025