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.