The Capital Markets Authority (CMA) has flagged 15 entities for seeking funds from the investing public without the required permits to undertake such operations from the watchdog.

In a communique dated 11th September, CMA accused the entities of running their businesses unlawfully even as unregulated investment schemes increase across East Africa.

Those in the list that is currently under scrutiny by the Directorate of Criminal Investigations include virtual investment firms Global Investment Group, QVSE, Kore Exchange and Abacus Wealth Management.

Other include Brown Advisory Group, Bitblock Capital Ltd, Maliwave Investments, B Invest and Monetrix Capital Investments.

Also under CMA radar are Twenty-four Hours Pro Expert Trader, Wealth Sharing Group (Opticcoin), CBEX, Just Markets, Ultima Cryptocurrency and Lukman-trust fund.

“The Authority wishes to caution the public against a number of entities purporting to offer investment services in Kenya without the requisite licensing or approval,” the CMA statement read. “These entities are operating unlawfully and fraudulently soliciting funds from the public.”

The regulator added that the entities in the suspect list are u8ndr formal investigations by relevant authorities in the financial industry. 

The inclusion of multiple cryptocurrency and forex trading platforms on the list signals a shifting regulatory focus toward digital asset schemes, which have proliferated in Kenya despite the absence of a comprehensive legal framework for virtual assets.

Fraudulent activities

The CMA urged the public to exercise caution, warning that the entities often disguise their fraudulent activities as legitimate investment opportunities. “The Authority strongly cautions the public against dealing with entities and persons disguising their fraudulent activities as investment opportunities,” the statement continued.

In recent years, thousands of Kenyans have lost billions of shillings to Ponzi schemes and unlicensed online trading platforms promising astronomical returns. The collapse of several high-profile schemes has repeatedly exposed gaps in enforcement, with regulators often acting only after substantial funds have been siphoned from unsuspecting investors.

The CMA did not disclose the amount of funds involved or the number of affected investors. However, the DCI is expected to launch a coordinated crackdown, including potential asset seizures and criminal prosecutions.

“The public and affected persons are encouraged to cooperate in the ongoing investigations by reporting to their nearest local Directorate of Criminal Investigation offices,” the CMA stated.

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