The Capital Markets Authority (CMA) has approved the grant of three investment banking permits to Cinemark Consult Ltd, Fintrust Securities Ltd and AIB AXYS Africa Ltd, marking a bold expansion of the country's capital markets capacity in push to enhance liquidity and options for investors.

In a markets update on Thursday, CMA upgraded the entities' existing intermediary permits, effectively broadening the range of services which the three can offer as part of the regulators effort to enhance innovation, and market diversification.

Previously a securities dealer, Cinemark Consult Ltd now has the mandate to offer a suite of services such as corporate advisory, securities dealing and underwriting. Additionally, the firm will be in a position to undertake fund management targeting institutional investors, corporates, retail, diaspora buyers as well as high net-worth clients.

On its part, Fintrust Securities Ltd, which has been operating as a securities dealer will enjoy an expanded scope, including advisory services on corporate finance and underwriting. It can also undertake equity capital raising, wealth and asset management, research plus enhanced fixed-income trading, CMA stated.

Also licensed in the latest batch was AIB-AXYS Africa Limited, which was previously restricted to stockbrokerage services. Other than stock brokerage, AIB-AXYS Africa is now set to offer corporate finance advisory services and capital raising.

Additionally, AIB-AXYS Africa can guide clients on wealth management, underwriting and syndication, alternative investments and sustainable finance advisory services.

CMA stated that AIB-AXYS Africa license includes digital access for retail and diaspora investors through its trading platform.

According to the markets regulator, the latest approvals would contribute to increased market depth, improved product diversity, enhanced issuer and investor choice, and strengthened confidence in Kenya’s capital markets.

“The Authority remains committed to maintaining high regulatory standards while supporting innovation and responsible market development,” the regulator said in a statement.

The latest licensing comes as Nairobi seeks to position itself as a competitive financial hub within East Africa, alongside growing regional rivals. 

Expanding the investment banking segment has been a stated priority for the CMA, which has previously signaled concerns about shallow secondary markets and over-reliance on a small number of institutional players.

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