Kenya’s very own FX regulatory has recently issued multiple warnings to users that they shouldn’t be dealing with unlicensed companies and their financial products. The Capital Markets Authority (CMA) announcement was released this Thursday.
As per the CMA, Kenyans are losing funds to illegal and unregulated entities. In turn, these scammers motivate others to start their own schemes, in a very dangerous cycle that may lead to millions in damages.
The Chief Executive of the CMA, Wyckliffe Shamiah, commented that defrauded investors should report directly to the Capital Markets Fraud Investigation Unit (CMFIU). The CMFIU is the police unit to the CMA.
The little-known Capital Markets Authority was founded in 1989 as the government-approved FX overseer. We have written all about it here.
Meanwhile, the news outlet Finance Magnates recently reported on the status of the FX markets industry in Kenya. The local retail market was claimed to have grown by 80% on average since a new regulatory framework was introduced. Since the report, the country boasts more than 90 000 traders.
Africa has been experiencing a spike in FX and CDF trading and adoption, not to mention a boom in crypto trading, but also investment scams. However, the good news is that many global brokers have been putting a lot of their energy into breaking through the African market.