Regulatory Alerts2022-01-01
Capital Markets (Investment-Based Crowdfunding) Regulations, 2022
These regulations establish a mandatory licensing and operational framework for entities providing investment-based crowdfunding platforms in Kenya, requiring operators to meet specific financial, human resource, and security criteria under the oversight of the Capital Markets Authority. Eligible issuers are restricted to micro, small, and medium enterprises or start-ups with documented track records, subject to an aggregate fundraising limit of 100 million Kenya shillings per twelve-month period. Crowdfunding platform operators are strictly prohibited from raising their own funds or providing investment advice and must ensure investor protection through mandated risk disclosures, custodial arrangements, and the implementation of standardized offering documents.