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FinTechs belonging to this category offer asset and portfolio management services via an internet platform or software programs and usually manage and dispose of the assets of their customers long or short term according to their specifications without actually holding the property or the possession of those assets. FinTechs, which provide information about and access to overnight or time deposit accounts at national and foreign banks and which execute the transactions to these accounts, also belong to this category. Some FinTechs however only act on request of the customer.
Aside from that some FinTechs offer software or internet solutions enabling users to manage and plan their personal finances on their own by providing graphics, overviews and compilations of their financial data and sometimes indicating financial risks or opportunities, but without actually managing the assets.
Introduction
Attitude of the country towards modern asset and portfolio management services
Kenya has shown a growing openness toward modern asset and portfolio management services, especially in the context of digital financial inclusion and retail investment. With the rise of mobile money platforms and increasing internet penetration, there's a notable increase in consumer interest in FinTech-driven investment platforms, particularly among tech-savvy youth and the middle class.
However, the traditional asset management market remains dominant, and regulatory conservatism persists regarding newer technologies like AI-driven robo-advisors or algorithmic portfolio management. The Capital Markets Authority (CMA) has been cautiously supportive, actively engaging in regulatory sandbox programs to explore innovations in wealth management.
Concerns about investor education, fraud risk, and insufficient understanding of financial instruments by retail investors have tempered rapid growth. That said, platforms that simplify investment and personal finance—like Ndovu, Chumz, and Hisa—are gaining traction.
Legal affairs
Obligations and requirements to provide asset and portfolio management, or ancillary services described above
Any person or company intending to provide asset or portfolio management services in Kenya must be licensed by the Capital Markets Authority (CMA) under the Capital Markets Act (Cap. 485A). This includes those carrying out fund management, investment advisory, or dealing in securities.
To obtain a license, providers must:
Be registered as a company in Kenya.
Demonstrate adequate financial and operational capacity.
Submit a detailed business plan and policies (including anti-money laundering and data protection).
Employ qualified personnel (e.g., certified investment analysts).
Fulfill minimum capital requirements, which vary depending on whether the firm is offering investment advisory or fund management services.
Where FinTechs are merely offering software or platforms for customers to self-direct their investments (without discretionary asset management), they may still fall under the category of investment advisers or technology service providers and require CMA approval or a sandbox exemption.