Forex trading in many regions, including Kenya, saw significant growth in the early 2010s, attracting both local and international investors. However, as the market grew, so did the need for proper oversight to ensure transparency, fairness, and investor protection. That’s where the Capital Markets Authority (CMA) came in.
In 2017, Kenya’s CMA took its first major step toward regulating the Forex market by officially licensing and overseeing the first Forex broker in the country. Prior to this, the market operated largely without formal regulation, leading to concerns over fraudulent activities and untrustworthy platforms. The CMA’s intervention was a game-changer, ensuring that only licensed and reputable brokers could operate legally within the country.
This regulation set a framework for protecting retail investors and ensuring that Forex brokers adhered to stringent standards of transparency, ethical conduct, and financial integrity. It also allowed investors to trade with greater confidence, knowing that the brokers they engaged with were monitored and held accountable by the CMA.
Today, the CMA continues to oversee the Forex market in Kenya, creating a secure environment for both seasoned traders and newcomers. By regulating Forex brokers, the CMA has played a key role in making the market more trustworthy and accessible, ensuring that investors can engage in trading with peace of mind.