Kenya

Kenya boasts a growing and dynamic economy, with a rising interest in FX and CFDs trading. This presents an opportunity for brokers to tap into a new and expanding market.

Kenya is a leader in mobile phone penetration and financial technology (FinTech) in Africa, creating a favorable environment for online brokerage activities.

The Capital Markets Authority (CMA) regulates the Kenyan FX and CFDs market, providing a framework for investor protection and market stability. The CMA regulations are still evolving to keep pace with the dynamic FinTech sector, potentially offering flexibility for innovative brokers.

Collaboration with International Bodies: The CMA actively collaborates with international regulatory bodies, demonstrating a commitment to international best practices.
Favorable Tax Environment: Kenya offers a relatively competitive corporate tax rate compared to some regional neighbors.
Government Support: The Kenyan government has shown support for the development of the FinTech sector, potentially creating a supportive environment for FX and CFDs brokers.

Get in touch with us to learn more about Heaving a FX CFD license in Kenya

Jurisdiction: Kenya
Regulator: Kenya Capital Markets Authority
License Name: Non Dealing Online Foreign Exchange Broker
Products Allowed (CFD on all/certain assets): FX and CFDs
Activities Allowed (Broker/MM): Broker only
Passporting: N/A
Leverage Limitations: None
Structure requirements (#shareholders / director/officers, MLRO): Minimum of 4 Shareholders; Minimum 3 Directors (not based in Kenya); 1 CEO (Kenya based); 1 CFO (Kenya based); 1 Compliance Officer (Kenya based); 1 Local Director / Representative (Kenya based); Risk Manager (typicaly 1 of the Directors); Internal Auditor (Kenya based, may be outsourced)
Basic requirements (business plan, website. demands from UBO, professional background: Detailed business plan incl. 3 years financial forecast. CEO and Local Director / Representative must meet minimum education and experience requirement; CFO and Compliance Officer must be admitted and registered in Kenya with their respective professional bodies.
Local Physical Presence (Local Office and Local Staff): Local Office; 1 CEO (Kenya based); 1 CFO (Kenya based); 1 Compliance Officer (Kenya based); 1 Local Director / Representative (Kenya based); External Auditor
Insurance: Not required
Clients' Funds Segregation: Mandatory (must open 2 bank accounts - 1 Corporate and 1 for clients' funds)
Corporate Income Tax Rate: 37.5% (but a lot of expenses may be deducted)
Minimum Capital Requirement: $300,000 USD
Time Frame for License Issuance (as of submission): 4-8 Months
Regulatory leniency level (basic, intermediate, complex): Complex
License Validity: No expiry date
Reporting Frequency (Monthly/Quarterly/Annualy): AML Reports; Annual Audited Financial Statements;

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