Kenya’s Capital Markets Regulator Licenses Six New Financial Intermediaries in Major Expansion Push

Kenya’s Capital Markets Authority has approved six financial firms to operate as market intermediaries in a move designed to deepen the country’s capital markets, encourage innovation, and significantly broaden retail and institutional access to investment services across multiple asset classes.

The licensing announcements, made on Wednesday, February 11, 2026, represent a continuation of the regulator’s strategic push to modernize Kenya’s financial markets infrastructure and expand the range of regulated service providers available to an increasingly sophisticated investor base spanning retail participants, institutional asset managers, corporate treasuries, diaspora communities, and high-net-worth individuals.

“The approvals reflect the Authority’s commitment to fostering a well-regulated, inclusive, and dynamic capital markets ecosystem that responds to the evolving needs of retail, institutional, corporate, diaspora, and high-net-worth investors, while supporting sustainable economic growth,” CMA stated in its official announcement.

Build the future you deserve. Get started with our top-tier Online courses: ACCA, HESI A2, ATI TEAS 7, HESI EXIT, NCLEX-RN, NCLEX-PN, and Financial Literacy. Let Serrari Ed guide your path to success. Enroll today.

Major Investment Bank Upgrade

Among the most significant approvals is Rock Advisors Limited, which has successfully upgraded from a basic investment advisory license to a full Investment Bank license. This regulatory elevation enables the firm to offer a substantially expanded suite of services including comprehensive market research, sophisticated advisory capabilities, integrated wealth management solutions, and proprietary trading operations.

The upgrade represents a meaningful advancement in Rock Advisors’ business model, transitioning the firm from providing advice to clients to becoming a principal participant in capital markets transactions. Investment banks play a crucial role in capital formation by underwriting securities offerings, facilitating mergers and acquisitions, structuring complex financial products, and providing bridge financing for corporate transactions.

Rock Advisors previously held only an investment advisory license, which limited its activities primarily to providing recommendations and guidance to clients on investment decisions. The investment banking license expands the firm’s regulatory permissions to include activities such as arranging and underwriting equity and debt offerings, acting as principal in securities transactions, and offering structured products that require more sophisticated risk management frameworks.

Technology-Driven Stockbroking Entry

Green Margin Capital Limited has received approval to operate as a licensed stockbroker, positioning itself as a technology-first investment house focused on democratizing access to capital markets investments. The firm’s stated strategy centers on combining rigorous research capabilities, technological innovation, and comprehensive investor education programming to drive broader participation in Kenya’s equity and fixed income markets.

Stockbrokers serve as the primary access point for retail and institutional investors seeking to trade securities listed on the Nairobi Securities Exchange. The licensing of Green Margin Capital adds another participant to this ecosystem, potentially increasing competitive dynamics around pricing, service quality, and product innovation.

The firm’s emphasis on technology-driven service delivery aligns with broader industry trends toward digital engagement channels, mobile trading platforms, and automated investment solutions. This technological orientation may prove particularly relevant for reaching younger investors, diaspora communities accessing markets remotely, and underserved market segments that have historically faced barriers to capital markets participation due to minimum investment requirements or geographic constraints.

Green Margin Capital indicated plans to serve retail, institutional, diaspora, and emerging investor segments through integrated research, innovation frameworks, and structured investor education initiatives designed to build financial literacy alongside market access.

Investment Advisory License Grants

The regulator granted investment adviser licenses to three firms, each bringing distinct capabilities and target client segments to Kenya’s financial advisory landscape.

Zamara Actuaries, Administrators and Consultants Limited, already holding licenses from both the Retirement Benefits Authority and the Insurance Regulatory Authority, now extends its advisory expertise into capital markets. The firm’s established practice encompasses actuarial consulting, pension scheme administration, insurance brokerage, and comprehensive financial planning services.

This multi-regulator licensing positions Zamara to offer integrated financial solutions that bridge retirement planning, insurance protection, and capital markets investing. The convergence of these service lines reflects growing demand for holistic wealth management approaches that coordinate tax-efficient retirement savings, risk management through insurance products, and growth-oriented investment strategies.

Arion Capital Limited secured an investment adviser license with a stated focus on delivering customized advisory services to corporates and high-net-worth individuals. The firm emphasizes alignment of financial returns with social and environmental objectives, indicating a positioning around environmental, social, and governance (ESG) investment frameworks.

The ESG investment segment has grown substantially in recent years as institutional investors, family offices, and high-net-worth individuals increasingly seek to integrate sustainability considerations into investment decision-making. Arion Capital’s explicit focus on this market segment suggests confidence in sustained demand for advisory services that help clients navigate impact measurement, sustainability reporting, and values-aligned portfolio construction.

Horizon Africa Capital Limited, described as a boutique mergers and acquisitions and capital-raising firm, also received investment adviser approval. The company outlined plans to deliver technology-enabled wealth management solutions while mobilizing domestic savings into productive investment opportunities.

Horizon Africa Capital’s dual focus on M&A advisory and capital raising positions the firm to serve mid-market corporate clients seeking growth capital, strategic buyers evaluating acquisition targets, or shareholders considering exit transactions. The wealth management component suggests an intention to also serve individual investors and family offices with portfolio management and financial planning services.

Intermediary Service Platform Expansion

I&M Capital Limited, a wholly-owned subsidiary of I&M Group PLC, received an Intermediary Service Platform Provider (ISPP) license. The firm already operates as a licensed fund manager and will now expand its service delivery through enhanced platform capabilities.

As an ISPP, I&M Capital gains regulatory permission to operate technology platforms that facilitate capital markets transactions and investment product distribution. This licensing category supports digital transformation of capital markets access by enabling online onboarding, automated portfolio management, and streamlined transaction processing.

I&M Capital’s existing wealth management and advisory offerings include unit trusts, government securities such as Treasury bills and bonds, offshore investment access, and comprehensive financial planning services. The ISPP license enables the firm to scale these services through digital channels while potentially serving as a distribution platform for third-party investment products.

The I&M Group represents a leading banking and financial services conglomerate with operations across Kenya, Tanzania, Rwanda, Uganda, and Mauritius. I&M Capital’s platform expansion leverages this regional presence and existing client relationships to drive capital markets product adoption across the group’s multi-country footprint.

One decision can change your entire career. Take that step with our Online courses in ACCA, HESI A2, ATI TEAS 7, HESI EXIT, NCLEX-RN, NCLEX-PN, and Financial Literacy. Join Serrari Ed and start building your brighter future today.

Regulatory Context and Market Development

The Capital Markets Authority was established in 1989 as Kenya’s primary capital markets regulator with mandates spanning licensing and supervision of market intermediaries, ensuring legal and regulatory compliance by all participants, regulating public securities offerings, promoting market development through product innovation, advancing investor education, and protecting investor interests.

CMA’s regulatory jurisdiction extends beyond traditional capital markets to encompass commodity markets and online foreign exchange trading. The Authority operates as an independent statutory agency charged with developing orderly, fair, and efficient capital markets that promote market integrity and investor confidence.

The regulator’s licensing approach balances market development objectives with investor protection imperatives. New entrant approval processes require demonstration of adequate capital resources, qualified personnel, robust operational systems, appropriate governance structures, and comprehensive compliance frameworks before licenses are granted.

The authority emphasized that all newly licensed intermediaries will operate under full regulatory oversight with stringent licensing conditions designed to ensure investor protection, market transparency, and operational integrity. These conditions typically include minimum capital requirements, fit-and-proper criteria for management and key personnel, operational risk management frameworks, client asset segregation protocols, and regular reporting obligations.

Market Depth and Product Diversification

CMA indicated that the entry and expansion of these intermediaries will contribute to increased market depth, improved product diversity, enhanced investor choice, and strengthened confidence in Kenya’s capital markets.

Market depth refers to the volume of buy and sell orders available at different price levels, reflecting the ability of markets to absorb large transactions without significant price impacts. Increased intermediary participation typically enhances market depth by bringing additional capital, diverse investment strategies, and expanded client bases that generate more robust two-way order flow.

Product diversity encompasses the range of investment instruments and structured solutions available to investors across risk-return profiles, time horizons, currency denominations, and asset classes. The newly licensed intermediaries bring capabilities spanning proprietary research, structured products, ESG-focused strategies, offshore market access, and technology-enabled solutions that expand beyond traditional equity and government bond offerings.

Enhanced investor choice manifests through increased competition among service providers on dimensions including pricing, service quality, product innovation, and client experience. The expansion of licensed intermediaries creates more options for investors to select providers aligned with their specific needs around investment philosophy, service model, fee structures, and relationship approach.

Strengthened market confidence derives from visible regulatory oversight of expanding market participants, demonstrating active supervision and enforcement of licensing standards. The regulator’s approval of multiple intermediaries simultaneously signals regulatory capacity to absorb new entrants while maintaining oversight quality.

Technology and Digital Transformation

The emphasis on technology-driven service delivery across several newly licensed firms reflects broader capital markets digitalization trends. Recent regulatory initiatives including the launch of mobile-based trading platforms demonstrate CMA’s support for technological innovation that expands market access while operating within appropriate regulatory frameworks.

The Nairobi Securities Exchange, in partnership with Safaricom, recently launched Ziidi Trader, a mobile trading platform enabling Kenyans to buy and sell listed shares directly from M-Pesa mobile wallets without requiring separate Central Depository System accounts. The service allows investments starting from a single share, dramatically reducing minimum entry barriers.

Such platforms operate under CMA oversight and represent the convergence of telecommunications infrastructure, mobile money networks, and capital markets regulation to create accessible investment pathways. The licensing of technology-focused intermediaries like Green Margin Capital and ISPP-licensed I&M Capital suggests continued regulatory support for digital innovation in service delivery.

Investor Segments and Market Access

The newly licensed intermediaries articulate target segments spanning retail investors, institutional asset managers, corporate treasuries, diaspora communities, and high-net-worth individuals. This segmentation reflects the diverse needs and investment behaviors across Kenya’s investor base.

Retail investors typically seek accessible entry points, user-friendly interfaces, educational support, and transparent pricing. Technology-enabled platforms, mobile trading capabilities, and fractional share ownership address traditional barriers around minimum investments, geographic access, and financial literacy.

Institutional investors including pension funds, insurance companies, mutual funds, and sovereign wealth vehicles require sophisticated research, execution capabilities across asset classes, custodial services, and regulatory reporting support. Investment banks, fund managers, and full-service brokers serve these mandates through dedicated institutional sales and trading desks.

Corporate treasuries managing operating cash, capital raising requirements, and balance sheet optimization utilize investment advisers and investment banks for debt and equity issuance, hedging strategies, merger and acquisition advisory, and corporate restructuring services.

Diaspora investors residing abroad but maintaining investment interests in Kenya require offshore-compatible account structures, foreign exchange facilitation, and digital engagement channels that accommodate remote access. Several newly licensed firms specifically reference diaspora segment targeting.

High-net-worth individuals and family offices seek personalized wealth management, tax-efficient structuring, estate planning integration, and access to alternative investments beyond listed securities. Dedicated advisory services, offshore investment facilitation, and ESG-focused strategies address this segment’s sophisticated requirements.

Wealth Management Service Evolution

The approval of multiple wealth management-focused intermediaries reflects maturation of Kenya’s wealth management industry. Wealth management integrates investment management, financial planning, tax optimization, estate planning, and risk management into cohesive client solutions.

I&M Capital’s wealth management services encompass portfolio advisory, offshore Eurobond access, international market trading, government securities investment, and leveraged bond products. The firm’s ISPP license enables scaling these capabilities through digital platforms while potentially white-labeling services for distribution through third-party channels.

Wealth management in emerging markets faces distinct challenges around product availability, regulatory frameworks for cross-border investing, currency convertibility, and advisory fee models. However, expanding high-net-worth populations, increasing financial sophistication, and growing awareness of diversification benefits drive sustained demand growth.

Looking Forward

The simultaneous licensing of six intermediaries represents one of the larger single approval batches from CMA in recent periods, suggesting both robust market development momentum and regulator confidence in sector growth prospects.

Kenya’s capital markets continue navigating broader economic headwinds including currency volatility, interest rate dynamics, and fiscal challenges. However, structural drivers including demographics, urbanization, pension system growth, insurance sector expansion, and increasing financial inclusion create longer-term positive trajectories for capital markets development.

The newly licensed intermediaries enter an evolving competitive landscape that includes established stockbrokers, investment banks, fund managers, and advisory firms. Differentiation will likely occur through technological capabilities, specialized expertise, client experience quality, and innovative product development rather than pure scale advantages.

Regulatory oversight quality will prove critical as market participant numbers expand. CMA’s capacity to conduct effective supervision, enforce compliance standards, and maintain market integrity while supporting innovation will significantly influence investor confidence and market development outcomes.

About the Capital Markets Authority

The Capital Markets Authority of Kenya is the independent statutory regulator responsible for supervising, licensing, and monitoring capital markets activities. Established in 1989 under the Capital Markets Act, CMA regulates market intermediaries including the Nairobi Securities Exchange, stockbrokers, investment banks, fund managers, and investment advisers. The Authority’s mandate encompasses investor protection, regulatory compliance enforcement, securities offering regulation, market development promotion, and investor education.

Ready to take your career to the next level? Join our Online courses: ACCA, HESI A2, ATI TEAS 7 , HESI EXIT  , NCLEX – RN and NCLEX – PN, Financial Literacy!🌟 Dive into a world of opportunities and empower yourself for success. Explore more at Serrari Ed and start your exciting journey today! ✨

Track GDP, Inflation and Central Bank rates for top African markets with Serrari’s comparator tool.

See today’s Treasury bonds and Money market funds movement across financial service providers in Kenya, using Serrari’s comparator tools.

photo source: Google

By: Montel Kamau

Serrari Financial Analyst

12th February, 2026