Government Issues Notice to Forex Traders as CMA Launches New Reporting System
The Capital Markets Authority (CMA) has announced the introduction of a new online financial reporting system that will be used by all licensed market intermediaries across the country.
The move is aimed at strengthening compliance, improving transparency, and modernising financial reporting within Kenya’s capital markets sector.
In a statement released on Monday, January 12, CMA Chief Executive Officer Wyckliffe Shamiah confirmed that the new system officially took effect on January 9, 2026.
He explained that the platform is accessible through the Authority’s online portal and is designed to replace the existing online submission system that has been in use by licensed firms.
Market intermediaries in Kenya refer to licensed institutions that act as a link between investors, issuers, and the wider capital markets. These firms play a critical role in enabling participation in financial activities such as trading in shares, bonds, and foreign exchange.
They offer services that support buying and selling of assets, investment advice, portfolio management, and other related financial services.
Such intermediaries include forex brokers, stockbrokers, dealers, investment banks, fund managers, investment advisers, authorised depositaries, Real Estate Investment Trust (REIT) managers, and corporate trustees. All these entities operate under the regulation and supervision of the CMA.
According to the Authority, the newly introduced system has been developed to allow licensed intermediaries to prepare and submit Risk-Based Capital Adequacy (RBCA) returns, alongside related management accounting reports. In addition, firms will now use the platform to submit a complete set of financial statements, which are normally required within three months after the close of a financial year.
“The purpose of this circular is to guide the rollout of the new reporting system, which replaces the current online submission portal effective January 9, 2026,” Shamiah stated. He added that the system is available through the CMA online services portal and is now the official channel for all regulatory submissions.
He further advised all licensed market intermediaries to ensure that RBCA returns and related financial statements are submitted through the new system within the required timelines.
Shamiah emphasised the importance of full compliance and encouraged firms to contact the Authority if they experience any challenges or require further clarification during the transition period.
CMA noted that the new reporting system will play a key role in improving regulatory oversight and ensuring that licensed intermediaries meet all financial and operational requirements.
The changes have been implemented in line with existing legal and regulatory frameworks, including the Capital Markets (Licensing Requirements) (General) Regulations, 2002, the Guidelines on Financial Resource Requirements for Market Intermediaries, and the Capital Markets (Online Foreign Exchange Trading) Regulations, 2017.
The announcement comes barely two months after the CMA urged the government to explore the adoption of tokenised or blockchain-based models in Money Market Fund (MMF) schemes.
In its Capital Markets Soundness Report (CSMR) released in early November 2025, the Authority suggested that Kenya could draw lessons from China, which became the first country in the world to launch a tokenised money market fund denominated in its local currency, the yuan.
According to the report, the tokenised fund model blends traditional fund management with the openness and efficiency of blockchain technology.
Unlike conventional money market funds that rely on centralised record-keeping systems, the tokenised version uses digital tokens to represent ownership.
These tokens are recorded on a public blockchain, making it possible to track transactions and holdings in real time.
CMA believes that such innovations, alongside improved regulatory systems like the newly launched reporting platform, could help strengthen Kenya’s capital markets, boost investor confidence, and support the growth of the financial sector in the long term.
Join Kenya Youths Forum Official WhatsApp Channel
https://whatsapp.com/channel/0029VaWT5gSGufImU8R0DO30
