The Capital Markets Authority (CMA) has introduced a new fee structure for market participants, that sets out revised application, licensing, and annual regulatory charges under the Sixth Schedule of the Capital Markets (Licensing) Regulations, 2025.
The updated framework replaces flat, uniform charges with a tiered system that varies by the license category held by financial institutions and intermediaries.
CMA Sets New License Application Fees for Brokers, Fund Managers and Exchanges
Under the new structure, securities exchanges will pay an application fee of Ksh 100,000, a licensing fee of Ksh 200,000, and an annual regulatory fee equal to 1 percent of gross earnings, excluding transaction fees.
Central depositories will also pay an application fee of Ksh 100,000, a licensing fee of Ksh 200,000, and a fixed annual regulatory fee of Ksh 200,000.
For over-the-counter (OTC) platform providers, the application fee is set at Ksh 10,000, with a licensing fee of Ksh 100,000 and an annual regulatory fee of Ksh 100,000.
Investment banks will pay a Ksh 20,000 application fee and Ksh 250,000 for licensing, with a similar annual regulatory charge of Ksh 250,000.
Broker-dealers are set to pay Ksh 10,000 for applications and Ksh 200,000 for licensing, while stockbrokers and dealers will each pay Ksh 10,000 for applications and Ksh 100,000 for licensing, with matching annual charges.
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Fund Mangers Hit Hard
Fund managers face a more complex structure, paying Ksh 10,000 as an application fee and Ksh 100,000 for licensing, or Ksh 50,000 if already licensed under the Retirement Benefits Act.
Their annual regulatory fees are set at 0.05 percent of assets under management for collective investment schemes, with a minimum of Ksh 100,000 and a maximum of Ksh 15 million.
Non-collective investment scheme managers, excluding pension funds, will pay 0.01 percent of assets under management, also capped at Ksh 15 million.
Investment advisers, custodians, and trustees will each pay Ksh 10,000 as application fees, Ksh 100,000 for licensing, and Ksh 100,000 annually in regulatory fees.
Intermediary service platform providers will pay an application fee of Ksh 10,000, a licensing fee of Ksh 50,000, and an annual fee of Ksh 50,000.
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| Category | Application Fee (Ksh) | Licensing Fee (Ksh) | Annual Regulatory Fee (Ksh) |
|---|---|---|---|
| Securities Exchange | 100,000 | 200,000 | 1% of gross earnings (excluding transaction fees) |
| Central Depository | 100,000 | 200,000 | 200,000 |
| Over-the-Counter Platform | 10,000 | 100,000 | 100,000 |
| Investment Bank | 20,000 | 250,000 | 250,000 |
| Broker-Dealer | 10,000 | 200,000 | 200,000 |
| Stockbroker | 10,000 | 100,000 | 100,000 |
| Dealer | 10,000 | 100,000 | 100,000 |
| Fund Manager | 10,000 | 100,000 (or 50,000 if licensed under the Retirement Benefits Act) | 0.05% of AUM for CIS (min 100,000, max 15,000,000); 0.01% of AUM for non-CIS excluding pension funds (max 15,000,000) |
| Investment Adviser | 10,000 | 100,000 | 100,000 |
| Custodian | 10,000 | 100,000 | 100,000 |
| Trustee | 10,000 | 100,000 | 100,000 |
| Intermediary Service Platform Provider | 10,000 | 50,000 | 50,000 |
Revised Capital and Financial Requirements
The 2025 Regulations introduce modifications to capital adequacy standards.
Shareholders’ funds and liquid capital thresholds for stockbrokers remain unchanged at Ksh 50 million and Ksh 30 million or 8% of total liabilities, respectively.
Meanwhile, the liquid capital requirement for dealers has been reduced from Ksh 30 million or 8% of total liabilities to Ksh 10 million or 8% of total liabilities.
Conversely, investment banks now face a lowered paid-up share capital requirement, reduced from Ksh 250 million to Ksh 150 million, but an elevated liquid capital obligation increased from Ksh 30 million or 8% of total liabilities to Ksh 50 million or 8% of total liabilities.
For fund managers, the 2025 Regulations impose a significantly higher capital burden, with shareholders’ funds increasing from Ksh 10 million to Ksh 20 million, effectively doubling compared to the 2002 regime.
