Stockbroker Licence — Fees and Charges in Kenya

A stockbroker is a licensed intermediary who executes buy and sell orders for securities on behalf of clients on a securities exchange, earning commission on transactions. In Kenya, stockbrokers operate on the Nairobi Securities Exchange (NSE) and are licensed by the Capital Markets Authority (CMA) under the Capital Markets (Licensing Requirements) (General) Regulations, 2025, which overhauled the licensing framework that had been in place since 2002.

Fees and Charges (Under CMA Licensing Regulations, 2025)

Fee Item	Amount (KES)
Application fee	100,000
Licensing fee	200,000
Annual regulatory fee	1% of gross earnings (excluding transaction fees)

Under the 2025 Regulations, licences are granted on a perpetual basis — they remain valid indefinitely subject to ongoing compliance and payment of annual regulatory fees — replacing the annual renewal requirement that applied under the previous 2002 framework. No portion of annual licence fees already paid is refundable if a licence is revoked or surrendered.

Capital Requirements

Capital Metric	Requirement (KES)
Minimum shareholders' funds (paid-up capital + reserves)	50,000,000
Minimum liquid capital	30,000,000 or 8% of total liabilities (whichever is higher)

These capital thresholds for stockbrokers remain unchanged under the 2025 Regulations.

Transaction Levies (Per Trade)

Levy	Rate
CMA Investor Compensation Fund contribution	0.02% of transaction value (net, per stockbroker)
CDSC Guarantee Fund fee	Included in the 0.02% net contribution
NSE transaction levy	Per NSE tariff schedule

Key Application Requirements

Requirement	Details
Form 1 (CMA)	Application for stockbroker licence
Audited financial statements	Most recent two years; unaudited accounts for current period
Business plan	Organisational structure, shareholding, management, IT systems
Minimum paid-up capital evidence	KES 50 million confirmed
Fit and proper forms	All directors, CEO, and senior officers
NSE trading participant agreement	Evidence of proposed or existing NSE membership
Approval in principle	Available for applicants who substantially meet requirements; valid for 6 months

A stockbroker may not deal on its own account — proprietary trading requires a separate dealer licence or the new broker-dealer licence introduced under the 2025 Regulations. Regulated by the Capital Markets Authority (CMA) under the Capital Markets Act, Cap. 485A, and the Capital Markets (Licensing Requirements) (General) Regulations, 2025, Laws of Kenya.

Summary: Fees at a Glance

Licence / Certificate	Issuing Body	Key Fee (KES)	Min. Capital (KES)
Business Registration Certificate (Partnership)	BRS	950 (registration)	None
Certificate of Incorporation (Private Ltd Company)	BRS	10,650	None (sector rules apply)
LLP Registration Certificate	BRS	25,000	None
KRA PIN	KRA	Free	N/A
VAT Registration Certificate	KRA	Free	N/A
Excise Duty Registration	KRA	Free	N/A
Licence to Manufacture Excisable Goods	KRA	Free	N/A
Excise Stamps	KRA	Per unit (varies)	N/A
Tax Compliance Certificate	KRA	Free	N/A
Commercial Bank Licence	CBK	400,000 (head office) + branch fees	10 billion (new entrants)
Mortgage Finance Company Licence	CBK	400,000 (head office) + branch fees	1 billion (transitioning to 10 billion)
Microfinance Bank Licence	CBK	Per CBK DTM schedule	20M (community) / 60M (nationwide)
Microfinance Institution (NDTCP)	CBK	100,000 application + 500,000 annual	Threshold at KES 20M triggers licence
Foreign Bank Representative Office	CBK	Per CBK schedule	N/A (no banking activities)
Foreign Exchange Bureau	CBK	20,000 application + 20,000 annual	5,000,000 per bureau
Money Remittance Licence	CBK	20,000 application + 100,000 licence	Per MRP regulations + 5M guarantee
Credit Reference Bureau	CBK	10,000 application + 100,000 annual	Per CRB Regulations
Digital Credit Provider	CBK	5,000 application (current) / 100,000 (proposed)	Per CBK DCP regulations
Payment Service Provider	CBK	100,000 (authorisation)	1M–50M (by category)
Electronic Money Issuer	CBK	100,000 (authorisation)	1M (small) / 20M (standard)
Stockbroker Licence	CMA	100,000 application + 200,000 licence + 1% GAR annually	50,000,000 shareholders' funds

Note: Always confirm the current applicable fee on the live eCitizen, iTax, CBK, or CMA portal at the time of application. Regulatory fees are subject to revision. The CBK is actively reviewing bank licence fees (2025 consultative paper), and the draft NDTCP Regulations 2025 propose significant increases for credit providers.

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