NAIROBI, Kenya — The Capital Markets Authority (CMA) has licensed four new market intermediaries in investment advisory, real estate investment trust (REIT) management, coffee brokerage and digital investment services, in a move aimed at deepening Kenya’s capital markets and expanding investor access to regulated financial products.
The approvals, announced on Monday, form part of the regulator’s strategy to promote innovation, increase product diversity and broaden participation across retail, institutional, corporate, diaspora and high-net-worth investor segments.
New investment advisory licence
Among the newly licensed firms is Finaltus Limited, which has received an Investment Adviser licence.
The Nairobi-based firm, which also operates in several African markets, specialises in business, investment and transaction advisory services.
According to the CMA, the licence will enable the company to provide investment advisory services to clients in both listed and unlisted markets, drawing on its expertise in corporate finance, investment due diligence and strategic advisory.
The firm has also indicated it will focus on environmental, social and governance (ESG) investments and cross-border transactions in support of Kenya’s Vision 2030 and broader sustainability objectives.
Shariah-compliant REIT manager approved
The regulator also licensed Istithmaar Lulu Maknoon Limited (ILM) as a Real Estate Investment Trust (REIT) Manager.
The company is positioned as a Shariah-compliant investment manager and intends to raise, manage and invest capital in projects that comply with Islamic finance principles.
It will also manage REITs, private equity funds and investor capital within the framework of Shariah-compliant financial products, providing additional investment options for Kenya’s growing Islamic finance market.
Coffee reforms and digital investing
In support of ongoing coffee sector reforms, the Authority granted Saffron Coffee Marketers Limited a Coffee Broker licence.
The company has been established to provide coffee brokerage services primarily to coffee estate farmers in Embu County, strengthening market access for producers.
Meanwhile, Frictionless Enterprises Limited, trading as Power®, received an Intermediary Service Platform Provider (ISPP) licence.
The company operates a digital investment platform that integrates employer payroll systems with fund managers through secure application programming interfaces (APIs).
Under the licence, Power® will formally offer its savings platform, enabling users to invest in money market funds managed by CMA-regulated fund managers while the licensed fund managers retain responsibility for portfolio management, unit pricing and custodial functions.
The company previously participated in the CMA Regulatory Sandbox before qualifying for full licensing under the new regulatory framework.
Strengthening market confidence
CMA Chief Executive Officer FCPA Wyckliffe Shamiah said the entry of the new intermediaries would increase market depth, improve product diversity and enhance investor confidence.
“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,” Shamiah said.
He urged investors to transact only through licensed intermediaries and reminded all market participants of their continuing obligations regarding corporate governance, capital adequacy, investor protection, anti-money laundering compliance, and regulatory reporting.