East Africa
Starting a forex brokerage in Kenya
Kenya has a licence written specifically for online forex brokers. The Capital Markets Authority licenses three kinds of firm under its 2017 online forex regulations: dealing brokers, non-dealing brokers and money managers. This page reads those regulations, the 2023 changes and the CMA's own guidance from the side of a founder, then covers the platform and back office you run once licensed.
Kenya's online forex licencesFrom this guide's sources
- CMADealing broker, paid up capitalKES 50 million
- CMANon-dealing broker, paid up capitalKES 30 million
- CMAMoney manager, paid up capitalKES 10 million
- CMAClient leverageUp to 400 times the deposit
Figures and rows from this guide's own sources. Sample market data, sample clients and sample brands. "Your Brand" stands for your own name and logo.
The CMA's three online forex licences
Online forex brokerage in Kenya is licensed by the Capital Markets Authority under the Capital Markets (Online Foreign Exchange Trading) Regulations, 2017, Legal Notice No. 226 of 2017. Regulation 3 makes it an offence to act as a dealing online foreign exchange broker, a non-dealing online foreign exchange broker or a money manager without a CMA licence, and every applicant must be a company incorporated in Kenya and limited by shares.
The three licences do different jobs. A dealing broker trades as principal and market maker. A non-dealing broker acts as a link between the market and its clients for a commission or a mark-up in spreads, and does not make markets. A money manager runs clients' forex portfolios for a fee based on the assets it manages, works through a CMA-licensed broker under a written agreement, and may not receive client money.
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The regulations also say who runs the firm and how client money is kept. The chief executive needs at least five years of forex experience, and a dealing broker also needs a head of trading with at least three years' experience and ACI-FMA certification or its equivalent. Client money sits in a segregated account with a bank licensed under the Banking Act, is reconciled every day and may never be used for margining, hedging or as company assets. Leverage is capped at 400 times the client's deposit, which the CMA may revise by circular, and brokers may not offer currency pairs involving the Kenya shilling or binary options.
Two changes came in 2023. Legal Notice No. 160 of 2023 added an annual fee of 3% of gross trading revenue for dealing and non-dealing brokers, beside the fixed annual fees the 2017 regulations already set. CMA Circular No. 03/2023 of 21 September 2023 requires brokers to give clients negative balance protection and margin stop out protection, to report a client loss ratio every quarter and to obtain the CMA's no-objection before launching a new category of CFD product. Figures and practice change, so confirm them with the CMA and a Kenyan adviser. This is not legal advice.
| Requirement | Dealing broker | Non-dealing broker | Money manager |
|---|---|---|---|
| What it does | Trades as principal and market maker | Links clients to the market for a commission or spread mark-up, with no market making | Manages clients' portfolios through a CMA-licensed broker, and holds no client money |
| Minimum paid up capital | KES 50 million | KES 30 million | KES 10 million |
| Liquid capital, at all times | KES 30 million or 8% of total liabilities, whichever is higher | KES 30 million or 8% of total liabilities, whichever is higher | KES 5 million or 8% of total liabilities, whichever is higher |
| Fixed annual fee | KES 250,000 | KES 100,000 | KES 100,000 |
| Revenue fee, since 2023 | 3% of gross trading revenue | 3% of gross trading revenue | None |
| Client leverage | Up to 400 times the deposit | Up to 400 times the deposit | Set for brokers only |
| On the CMA register, 16 October 2026 | 2 firms | 14 firms | 3 firms |
Sources (7)
- Capital Markets Authority, Capital Markets (Online Foreign Exchange Trading) Regulations, 2017, Legal Notice No. 226 of 2017
- Kenya Law, Capital Markets (Online Foreign Exchange Trading) Regulations, 2017, consolidated to 6 October 2023
- Capital Markets Authority, Capital Markets (Online Foreign Exchange Trading) (Amendment) Regulations, 2023, Legal Notice No. 160 of 2023
- Capital Markets Authority, Circular No. 03/2023, guidance to all dealing and non-dealing online foreign exchange brokers (21 September 2023)
- Capital Markets Authority, register of licensed non-dealing online foreign exchange brokers (checked 16 October 2026)
- Capital Markets Authority, register of licensed dealing online foreign exchange brokers (checked 16 October 2026)
- Capital Markets Authority, register of licensed online forex money managers (checked 16 October 2026)
Who holds whatIllustration
- Licence
- Client relationship
- Client money
- Trading accounts
Illustration.
On your platform
How the platform fits this route
One deployment on your brand, domain and database: the terminal your clients trade on, and the CRM your team runs.
Sample market data and sample clients. "Your Brand" stands for your own name and logo.
Which licence fits the platform
On our platform the brokerage is the counterparty to every client trade, whether it keeps the trade in-house or covers it with its liquidity provider.
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In Kenyan terms that is the dealing broker's business: trading as principal and market maker. A non-dealing broker does not make markets, so it should ask us and the CMA how its orders would be handled before it chooses any platform, and a money manager works through another firm's licence and holds no client money of its own.
The application itself asks for the platform early. Regulation 4(2) wants a letter from a recognised online foreign exchange trading platform saying it will admit the applicant once licensed, and the service level agreements with other online forex service providers where they apply. Settle the technology before you file, not after the licence arrives.
Warnings against unlicensed forex in Kenya
Kenyan regulators have warned the public about unlicensed forex firms more than once.
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The Central Bank of Kenya's notice of 16 August 2019 warned against unlicensed online foreign exchange dealers, and the joint notice of 25 August 2020 from the CMA, the Central Bank and other regulators says the CMA licenses and regulates online forex brokerage and trading, while the Central Bank licenses forex dealers and the Kenya shilling side of online forex trading.
For a new broker that history is a selling point as much as a risk. The CMA publishes its register of licensed firms, so a licensed broker can point clients to its own entry from the first conversation.
What your Kenyan clients trade on
The terminal works the same on a phone as on a desktop.
Sample market data and sample clients.
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It installs to the home screen on Android in one tap and on iOS with a short guided step, and updates itself without an app store. Clients trade forex, gold and silver, oil, stock indices, crypto and US stocks, each priced with its own spread, contract size and digits.
The rules from Circular No. 03/2023 meet the platform here. The margin engine shows live equity and free margin, warns at margin call and stops out automatically at levels you set, closing the biggest loser first. If an account still ends below zero, an admin writes it back to zero in the CRM and the write-off stays on record. Leverage is set per account type and per account, so you keep every client inside the CMA's cap.
The CRM behind a Kenyan desk
Your staff work in a full CRM on your own brand: a leads pipeline with sources and assignment, one record per client with accounts, money, trades, documents and calls, and five roles from admin to sales so each agent sees only their own book.
KYC review
Sample data and sample clients.
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Deposits and withdrawals are instant or approved, as you choose, against the bank and payment details you set, and identity documents are reviewed in the CRM before any withdrawal goes out. Every sensitive staff action lands in an audit trail with who did it and when. Our pricing is a flat monthly fee with no setup fee, and the first month is free.
Common questions
Anything else? Our team answers 24/7.
Is forex trading legal in Kenya?
Yes, through a firm the Capital Markets Authority has licensed. Acting as an online forex broker or a money manager without a CMA licence is an offence under regulation 3 of the 2017 regulations, and the CMA publishes a register of the firms it has licensed.
How much capital does a forex broker need in Kenya?
KES 50 million paid up for a dealing broker, KES 30 million for a non-dealing broker and KES 10 million for a money manager. Brokers must also keep liquid capital of KES 30 million or 8% of total liabilities, whichever is higher, at all times (KES 5 million or 8% for a money manager).
What leverage can a Kenyan forex broker offer?
Up to 400 times the client's deposit under regulation 19, a limit the CMA may revise by circular. Since Circular No. 03/2023, brokers must also give clients negative balance protection and margin stop out protection.
What fees does the CMA charge a forex broker?
A fixed annual fee of KES 250,000 for a dealing broker and KES 100,000 for a non-dealing broker or a money manager, and since 2023 an annual fee of 3% of gross trading revenue for both kinds of broker. The application fee appears as KES 2,500 in one schedule and KES 10,000 in another, so confirm it with the CMA.
Which Kenyan licence suits your platform?
The dealing broker's. On our platform your brokerage is the counterparty to every client trade, whether you keep it in-house or cover it with your liquidity provider, which is dealing as principal. A non-dealing broker should ask us and the CMA first.
Can a foreign company hold a CMA forex licence?
The licence goes to a company incorporated in Kenya and limited by shares, so a group based elsewhere applies through a Kenyan company. Ownership, staffing and capital questions are for a Kenyan adviser.
Do you help with the CMA application?
No. We build brokerage software. Licensing should be handled with Kenyan lawyers and advisers, and we work alongside whoever you appoint.
Get the platform ready while the CMA reviews
Book a demo and see the terminal and the CRM on your brand, so the platform side of your application is settled early.