The Capital Markets Authority (CMA) has granted four new licences to a diverse set of firms, a move designed to deepen the market and attract specialised investment.
The approvals include two new fund managers, one with a sharp focus on climate finance in Kenya, and another offering a suite of investment services. An investment adviser and a corporate trustee have also been licensed, broadening the ecosystem of market intermediaries.
This brings the total number of licensed fund managers in the country to 47. The sector is experiencing notable growth, with assets under management in Collective Investment Schemes rising to Ksh596 billion (£3.2bn) as of 30 June 2025, reflecting growing investor appetite for pooled funds.
A key highlight of the new licences is the approval of Kenya Climate Ventures Limited as a fund manager. The firm has a clear dual mandate: to provide financial and technical support to “gender-inclusive, climate-smart enterprises.”
Its primary objective is to establish and manage specialised Climate Impact Funds. These funds are intended to accelerate investment in projects that directly address climate change adaptation and mitigation, while also promoting gender inclusivity within the business landscape.
Alongside Kenya Climate Ventures, the CMA also licensed EDC Asset Management (Kenya) Limited. This firm is authorised to provide fund management, investment advisory, and segregated portfolio management services, bringing global investment expertise to the local market.
Beyond fund management, the CMA moved to bolster the advisory and governance pillars of the market. Jaila Advisers & Intermediaries Limited has been licensed as an Investment Adviser. The firm stated its intention to deliver “well-researched, customised, and sustainable investment solutions,” aiming to support wealth creation and financial inclusion nationwide.
Also, the Co-operative Bank of Kenya Limited has been granted a Corporate Trustee Licence. The bank, a listed entity with extensive capital markets experience, already serves as a licensed custodian and a Real Estate Investment Trust (REIT) trustee. This new licence formalises and expands its role in providing independent oversight and protecting investor assets in various trust schemes.
The latest batch of licences is not a mere administrative exercise but a calculated step by the CMA to fulfil its mandate of developing, regulating, and protecting Kenya’s capital markets.
By diversifying the types of licensed intermediaries, the Authority aims to enhance competition, improve the quality of services available to investors, and strengthen overall market governance. The inclusion of a firm dedicated to climate finance in Kenya signals an understanding that modern financial markets must align with global sustainability goals to remain relevant and attractive.
“The licensing of these entities, particularly those with an impact-investing lens, is crucial for driving inclusive growth,” the CMA’s statement read. “It brings together impact-driven climate finance and global investment expertise, both of which are vital in boosting investor confidence in Kenya’s capital markets.”
This development occurs against a backdrop of increasing interest from both local and international investors in sustainable assets across Africa. Kenya has positioned itself as a leader in green investments on the continent, with initiatives like green bonds gaining traction.
The growth of the Collective Investment Schemes sector to Ksh596 billion underscores a deepening of Kenya’s financial markets, providing citizens with more avenues for saving and investment beyond traditional bank deposits.
The expansion of Kenya’s capital markets infrastructure through these licences is a positive indicator of market maturity. The deliberate focus on climate finance in Kenya and inclusive investment advisory services suggests a future where the country’s financial growth is increasingly intertwined with sustainable and equitable development.
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