The Capital Markets Authority (CMA) has officially rolled out a comprehensive online financial reporting system that fundamentally transforms how licensed market intermediaries submit mandatory compliance documentation, marking a significant milestone in Kenya’s ongoing digitalization of financial market infrastructure.
In Circular No. 01/2026 issued on January 9, 2026, CMA Chief Executive Officer FCPA Wyckliffe Shamiah announced that the new digital platform, accessible exclusively through https://onlineservices.cma.or.ke/, immediately replaced the previous online submission portal and became the sole authorized channel for all regulatory filings by capital market participants.
The directive affects a broad spectrum of financial institutions operating under CMA’s regulatory jurisdiction, including forex brokers, stockbrokers, dealers, investment banks, fund managers, investment advisers, authorized depositaries, Real Estate Investment Trust (REIT) managers, and corporate trustees—all entities that facilitate critical intermediary functions between investors, issuers, and Kenya’s capital markets ecosystem.
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Understanding Market Intermediaries’ Role in Kenya’s Financial Architecture
In Kenya’s capital markets framework, market intermediaries represent licensed firms and institutions that bridge the gap between individual and institutional investors and the broader financial markets. These entities provide essential services including trading facilitation for shares, bonds, and foreign exchange instruments, alongside advisory, custodial, and asset management functions that enable both retail and institutional participation in capital markets activities.
The regulatory oversight exercised by CMA ensures these intermediaries maintain adequate capital buffers, operate with transparency, and adhere to stringent governance standards—protections that have become increasingly critical as Kenya’s capital markets continue their expansion trajectory. As of mid-2025, total assets under management in Collective Investment Schemes alone surpassed KES 596 billion, reflecting the growing sophistication and depth of Kenya’s investment landscape.
Mandatory Reporting Requirements Under the New System
The new platform has been specifically designed to facilitate two distinct categories of compliance submissions required under existing regulations. According to CMA’s circular, the system streamlines the submission process for Risk-Based Capital Adequacy (RBCA) returns and full financial statements, both of which form the backbone of the Authority’s supervisory framework for monitoring the financial health and stability of licensed intermediaries.
For monthly reporting obligations, market intermediaries must prepare and submit RBCA returns accompanied by corresponding management accounting accounts within 15 days following the conclusion of each calendar month. This frequent reporting cadence enables CMA to maintain real-time oversight of capital adequacy positions across the sector, allowing for early identification of potential solvency concerns or regulatory breaches.
Annual submissions carry even more stringent requirements. Licensed firms must submit comprehensive RBCA returns accompanied by fully audited financial statements within three months of their financial year-end. This annual filing provides CMA with detailed insights into each intermediary’s financial position, risk exposures, and compliance with minimum capital thresholds—information essential for maintaining systemic stability in Kenya’s capital markets.
Regulatory Framework Underpinning the Reporting System
The implementation of this digital reporting infrastructure aligns with several key pieces of legislation and regulatory guidelines that govern Kenya’s capital markets. The reporting requirements draw their legal authority from the Capital Markets (Licensing Requirements) (General) Regulations, 2002, which establish the foundational licensing framework for all market participants.
Additionally, the Guidelines on Financial Resource Requirements for Market Intermediaries provide specific parameters for minimum capital adequacy levels and liquidity buffers that different categories of intermediaries must maintain. These guidelines reflect international best practices in financial regulation while accounting for the unique characteristics of Kenya’s market structure.
For the rapidly growing online forex trading sector, the Capital Markets (Online Foreign Exchange Trading) Regulations 2017 introduced a comprehensive regulatory framework that brought previously unregulated forex platforms under CMA’s supervisory purview. These regulations mandate specific capital requirements, client fund segregation protocols, and risk disclosure obligations—all of which are monitored through the RBCA reporting mechanism now centralized on the new digital platform.
Strategic Imperative for Digital Modernization
The rollout of this advanced reporting system represents more than mere technological upgrading—it embodies CMA’s strategic commitment to aligning Kenya’s capital markets infrastructure with international regulatory standards while enhancing operational efficiency for both regulators and regulated entities. In December 2025, at the FiRe Award conference in Nairobi, senior regulators including CMA leadership, the Institute of Certified Public Accountants of Kenya (ICPAK), the Public Sector Accounting Standards Board, and representatives from the Nairobi Securities Exchange collectively emphasized the critical importance of strict adherence to International Financial Reporting Standards (IFRS) and International Public Sector Accounting Standards (IPSAS).
The strengthened digital framework addresses multiple regulatory objectives simultaneously. First, it substantially reduces the incidence of reporting errors that often plagued manual or legacy submission processes, thereby improving data quality and reliability. Second, it enhances CMA’s supervisory oversight capabilities by enabling more efficient data aggregation, analysis, and trend identification across the market intermediary sector.
Third, the platform provides intermediaries themselves with a more secure, user-friendly tool for managing sensitive financial data and ensuring timely compliance with evolving regulatory requirements. This technological enhancement comes at a pivotal moment, as Kenya’s capital markets continue experiencing robust growth with increasing numbers of licensed intermediaries entering various market segments including equities, fixed income, forex, and emerging asset classes.
Implementation Timeline and Transition Support
The transition to the new platform was designed to be immediate and comprehensive. As stipulated in the January 9, 2026 circular, the old submission portal was decommissioned effective that date, with all subsequent filings required to flow exclusively through the new system. This decisive approach eliminates the risks associated with parallel systems operating simultaneously and ensures uniform adoption across all market participants.
Recognizing the potential operational challenges associated with migrating to a new platform, CMA’s financial analysis team has been made available to provide technical assistance and guidance to intermediaries during the changeover period. The Authority has strongly advised all licensed entities to immediately familiarize their finance and compliance teams with the new portal’s functionality and requirements to avoid any disruptions to scheduled monthly or annual reporting deadlines.
“You are therefore advised to make your submission of RBCA returns and related financial statements through the new system within the prescribed timelines,” CEO Shamiah stated in the circular. “Kindly ensure compliance and do not hesitate to contact the Authority in case you require further clarification.”
Market participants face significant consequences for non-compliance with reporting obligations. CMA possesses broad enforcement powers including the authority to impose substantial financial penalties, suspend licenses, and in severe cases, revoke authorization to operate in Kenya’s capital markets. Early adoption and meticulous attention to the new system’s requirements therefore represent both regulatory obligations and prudent business practices for affected intermediaries.
Broader Context: CMA’s Digital Innovation Agenda
The launch of this reporting platform forms part of CMA’s comprehensive strategy to position Kenya as a regional leader in capital markets innovation and financial technology adoption. CEO Wyckliffe Shamiah, who assumed the chief executive role in November 2020 after serving as Director of Market Operations, has championed multiple digital initiatives aimed at enhancing market efficiency, transparency, and investor protection.
Under Shamiah’s leadership, CMA has pioneered several groundbreaking regulatory innovations. The Authority launched a regulatory sandbox program that provides a controlled environment for testing innovative financial solutions, including blockchain-based platforms for trading tokenized securities. In January 2025, CMA admitted Yeshara Tokens Limited to this sandbox for a one-year trial focused on tokenizing real estate assets—an initiative that could fundamentally transform access to traditionally illiquid investment opportunities.
“The tokenization of real estate holds significant potential to expand access to international financial markets for both local and global investors,” Shamiah noted when announcing the blockchain pilot program. This forward-looking stance on emerging technologies demonstrates CMA’s commitment to fostering innovation while maintaining robust investor protections.
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Exploring Blockchain and Tokenization in Kenya’s Capital Markets
The new reporting system’s implementation comes just two months after CMA issued a significant policy recommendation regarding the potential adoption of blockchain-based money market funds in Kenya. In its Capital Markets Soundness Report released in early November 2025, the Authority urged the government to seriously consider emulating China’s pioneering model of tokenized investment products.
China made history in February 2025 when China Asset Management (Hong Kong) Limited launched the world’s first tokenized money market fund, denominated in Hong Kong dollars and underpinned by blockchain technology. This innovative product, known as the ChinaAMC HKD Digital Money Market Fund, represents a watershed moment in the convergence of traditional asset management and distributed ledger technology.
Unlike conventional money market funds that rely on centralized record-keeping systems maintained by custodians and administrators, this tokenized fund issues digital tokens that serve as cryptographic proof of ownership. These tokens are recorded on a public blockchain, enabling real-time transparency of transactions and holdings while maintaining the same regulatory protections and investor safeguards as traditional funds.
The fund primarily invests in safe, short-term instruments including government bonds, fixed deposits, certificates of deposit, and commercial paper, with at least 70 percent of its holdings denominated in Hong Kong dollars or renminbi-settled assets. Investors can access the fund through both traditional distribution channels such as banks and brokers, as well as through Hong Kong’s regulated virtual asset trading platforms—a dual-channel approach designed to bridge the gap between conventional finance and emerging blockchain-based infrastructure.
Potential Framework for Kenya’s Blockchain Adoption
CMA’s recommendation for Kenya to explore tokenized money market funds envisions a regulatory framework that would balance innovation with investor protection. The recent passage of the Virtual Assets Service Providers (VASP) Bill in 2024 provides the foundational legal architecture for such initiatives, establishing clear licensing requirements and compliance obligations for entities operating in the digital assets space.
Under the proposed framework, providers of tokenized financial products would need to obtain a VASP license from CMA, establish themselves as registered Kenyan entities, and implement robust Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Know Your Customer (KYC) procedures. These requirements mirror the stringent standards applied to traditional financial institutions while accounting for the unique risks associated with blockchain-based systems.
Critical operational requirements would include mandatory segregation of client funds from the provider’s own operational capital—a safeguard ensuring investor protection in the event of company insolvency. Providers would face regular, independent IT security audits and financial examinations, alongside ongoing reporting obligations to regulators. These measures aim to replicate the investor protections available in traditional financial products while enabling the efficiency gains and transparency benefits inherent in blockchain technology.
“Such innovations could offer investors greater flexibility, strengthen trust in the financial system, and help position Kenya as a forward-looking financial hub in Africa,” CMA stated in its soundness report. However, the Authority emphasized that implementation would require careful planning, robust technical infrastructure, and close regulatory coordination between CMA and the Central Bank of Kenya.
Opportunities and Challenges in Blockchain Implementation
The potential benefits of tokenized investment products are substantial. Blockchain technology enables unprecedented transparency through real-time monitoring of all transactions and holdings on an immutable distributed ledger. This transparency could significantly reduce fraud risk and enhance investor confidence in capital markets products.
Financial inclusion represents another compelling advantage. Tokenized funds could dramatically lower minimum investment thresholds, making sophisticated investment products accessible to a broader demographic of Kenyan investors. Traditional money market funds typically require initial investments of KES 1,000 to KES 5,000, but blockchain-based products could theoretically enable fractional ownership at much lower entry points.
Operational efficiency gains flow from the automation capabilities embedded in smart contracts—self-executing code that automatically enforces the rules and processes governing fund operations. This automation could reduce administrative costs, streamline subscription and redemption processes, and eliminate many of the intermediaries required in traditional fund administration.
However, significant challenges must be addressed before widespread implementation becomes feasible. Regulatory coordination between CMA and the Central Bank of Kenya will be essential, as tokenized investment products blur traditional jurisdictional boundaries between capital markets and monetary policy domains. The absence of specific subsidiary regulations tailored to complex products like tokenized money market funds creates legal uncertainty that must be resolved through careful regulatory development.
The operational burden of rigorous compliance requirements poses challenges for potential providers, particularly smaller firms lacking the technical infrastructure and expertise to meet stringent cybersecurity, audit, and reporting standards. Technology risks—including blockchain network vulnerabilities, smart contract bugs, and cybersecurity threats—require continuous monitoring and robust risk management frameworks.
Kenya’s Money Market Fund Landscape
The discussion of tokenized funds gains particular relevance given the explosive growth of traditional money market funds in Kenya’s investment landscape. According to CMA data, the sector has experienced remarkable expansion, with total assets under management in Collective Investment Schemes reaching KES 596 billion as of June 2025.
CIC Insurance Group operates the largest money market fund in Kenya, with approximately KES 87.8 billion under management as of mid-2025. This market-leading position reflects the fund’s reputation for stability, competitive returns, and robust governance structures. Other major players include NCBA Investment Bank, Sanlam Investments East Africa, ICEA Lion, and Old Mutual, each managing multi-billion shilling portfolios.
Interest rates offered by these funds have fluctuated in response to monetary policy dynamics. After the Central Bank of Kenya lowered the benchmark interest rate from 12.75 percent to 12 percent in October 2024 to stimulate economic growth, returns on money market funds experienced downward pressure. Treasury bill rates—the primary investment vehicle for most money market funds—declined correspondingly, flowing through to lower returns for fund investors.
Despite this moderation, several funds continue delivering attractive double-digit returns. As of early 2025, Cytonn Money Market Fund led with an annualized return of 16.64 percent, while other top performers including Etica, GenAfrica, and Zimele funds offered returns ranging from 14.4 percent to 15.95 percent—yields that remain substantially higher than traditional bank savings accounts.
CMA’s Evolving Regulatory Mandate and Leadership
The implementation of the new digital reporting system reflects the broader evolution of CMA’s regulatory approach under CEO Shamiah’s leadership. Appointed permanently to the chief executive role in November 2020 by then-Treasury Cabinet Secretary Ukur Yatani, Shamiah brought to the position more than 23 years of experience at the Authority spanning multiple departments and functions.
His career progression through CMA’s ranks—from research officer to senior financial analyst, compliance manager, market supervision manager, and ultimately Director of Market Operations—provided deep institutional knowledge and operational expertise. Shamiah holds a Master’s degree in Business Administration with a finance specialization from the University of Nairobi and a Bachelor’s degree in Economics and Mathematics from Egerton University. As a Certified Public Accountant and Fellow of the Institute of Certified Public Accountants of Kenya (ICPAK), he brings strong financial acumen to his regulatory oversight role.
During his tenure, Shamiah has championed several landmark initiatives beyond the digital reporting platform and blockchain sandbox. Under his leadership, CMA facilitated the introduction of securities lending and borrowing platforms, enabled listed companies to conduct virtual Annual General Meetings—a critical innovation during the COVID-19 pandemic—and expanded the regulatory sandbox to accommodate fintech innovators including Belrium Kenya and Pyypl Group Limited.
Shamiah also serves as Chairman of the Market Supervision and Risk Management sub-committee of the East African Securities Regulators Forum (EASRA), a regional umbrella organization coordinating securities regulation across the East African Community. This role positions him at the forefront of efforts to harmonize regulatory standards, facilitate cross-border capital flows, and promote regional market integration.
International Context and Best Practices
Kenya’s move toward digitalized financial reporting aligns with global trends in regulatory technology (RegTech) adoption by financial market supervisors. Jurisdictions worldwide have recognized that modern, technology-enabled reporting frameworks enhance both regulatory efficiency and market stability while reducing compliance burdens on regulated entities.
The implementation of risk-based capital adequacy frameworks in emerging markets mirrors international standards established by bodies such as the Basel Committee on Banking Supervision. While originally designed for banking sector regulation, the principles of risk-weighted capital requirements have been adapted for application to non-bank financial intermediaries including securities firms, fund managers, and other capital markets participants.
Kenya’s regulatory framework for online forex trading, established through the 2017 regulations, represents a pioneering effort among African jurisdictions to bring this rapidly growing sector under formal oversight. The capital adequacy, client fund segregation, and transparency requirements imposed on licensed forex brokers through the RBCA reporting mechanism help protect retail investors from unscrupulous operators while maintaining market integrity.
Looking Forward: Digital Transformation and Market Development
As Kenya’s capital markets continue their development trajectory, the new online reporting system will serve as critical infrastructure enabling CMA to maintain effective oversight amid growing market complexity and participant diversity. The platform’s data analytics capabilities will enhance the Authority’s ability to identify emerging risks, detect potential regulatory violations, and allocate supervisory resources more efficiently.
For market intermediaries, the transition to digital reporting represents both challenges and opportunities. While the initial adjustment period may require investment in staff training, process adaptation, and IT systems integration, the long-term benefits include reduced compliance costs, faster processing times, and enhanced data quality that can inform better business decision-making.
The broader digital transformation agenda embodied in initiatives like blockchain pilots and tokenization experiments positions Kenya at the forefront of African capital markets innovation. As the regional financial hub ambitions articulated in Kenya’s Vision 2030 development blueprint continue to take shape, robust regulatory infrastructure combined with openness to technological innovation will prove essential competitive advantages.
Market participants, investors, and policymakers will closely watch the implementation of the new reporting system in coming months. Early indicators suggest strong compliance with the transition, with most major intermediaries successfully migrating to the platform within the prescribed timelines. CMA’s willingness to provide hands-on technical support during the changeover period has helped facilitate smooth adoption.
The Authority’s dual focus on strengthening regulatory compliance while encouraging market innovation through initiatives like the regulatory sandbox represents a nuanced approach to financial sector development. This balance—maintaining robust investor protections and systemic stability while enabling experimentation with emerging technologies—will likely define Kenya’s capital markets regulatory philosophy in the years ahead.
As CEO Shamiah concluded in his circular announcing the new system, ensuring compliance with established regulatory frameworks remains fundamental to maintaining the orderly, fair, and efficient capital markets that underpin investor confidence and economic growth. The digital reporting platform represents one more tool in CMA’s comprehensive arsenal for achieving this critical mandate while positioning Kenya’s capital markets for continued evolution and expansion in an increasingly digital financial landscape.
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By: Montel Kamau
Serrari Financial Analyst
13th January, 2026
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