CMA warns Kenyans over investing in MMFs, shares, crypto & forex platforms
CMA warns Kenyans over investing in MMFs, shares, crypto & forex platforms
The Capital Markets Authority (CMA) has warned Kenyans investing in Money Market Funds (MMFs), shares, forex platforms and other capital market platforms to remain vigilant amid a rise in fraudsters.
CMA on Friday, July 24, disclosed that fraudsters were impersonating licensed investment firms on social media and fake websites to lure Kenyans and scam them of their hard-earned money.
“Fraudsters are increasingly using social media, apps and fake websites to impersonate licensed capital market intermediaries and reputable firms to deceive unsuspecting investors,” the CMA said.
In its public advisory, CMA urged investors to verify the licensing status of any broker, fund manager, investment adviser or online forex dealer before committing their money.
The Authority warned members of the public that failing to verify the authenticity of the investment platforms could expose them to heavy financial losses.
The regulator provided an online verification portal where investors can confirm whether a broker, fund manager, investment bank, forex dealer, investment adviser or other capital market intermediary is licensed before investing.
The portal lists all CMA-approved market players across various categories, including fund managers, stockbrokers, investment banks, investment advisers, collective investment schemes, and derivatives brokers.
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It also lists authorised securities dealers, online foreign exchange brokers, REIT managers, corporate trustees, venture capital firms and intermediary service platform providers.
“Before you invest, always verify the licensees here: licensees.cma.or.ke. Stay Alert, Invest Smart,” the Authority announced.
The advisory comes at a time when several Kenyans are embracing digital investment platforms in search of higher returns, financial security and alternative income streams.
MMFs, in particular, have witnessed a surge in popularity over the past year due to their few entry requirements, ease of access through mobile apps, and competitive returns.
However, the rapid growth in online investing has also created a new ground for fraudsters, who are exploiting the popularity of these digital investment platforms by cloning the identities of licensed firms.
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