The Capital Markets Authority has warned Kenyans against investing through 15 entities accused of operating without the required approvals and of unlawfully soliciting money from the public.
The regulator said the warning is aimed at protecting investors as more Kenyans turn to online platforms, digital investment groups and social-media promotions in search of higher returns.
CMA cautioned that unregulated investment schemes can expose members of the public to fraud, loss of savings and limited legal recourse when platforms collapse or disappear.
Kenyans have been advised to confirm whether an investment adviser, fund manager, broker or trading platform is licensed before making any payment. Investors should also be wary of guarantees of unusually high returns, pressure to recruit friends, and requests to send money through personal mobile-money numbers.
The warning comes amid growing concern over the use of social media and messaging groups to market financial products that appear legitimate but operate outside Kenya’s regulatory framework.
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