Kenya’s capital markets are set to benefit from stronger investment banking capacity following the licensing of three new investment banks by the Capital Markets Authority (CMA). The approvals are expected to enhance corporate access to long-term financing, expand financial advisory services and strengthen the range of investment products available in the market. For investors, the move represents another step towards developing a deeper and more competitive capital market capable of supporting business expansion, mergers and acquisitions, and increased securities issuance.
According to the Capital Markets Authority, three financial institutions were granted Investment Bank licences in May 2026 after previously operating under different capital markets licenses. Cinemark Consult Limited, Fintrust Securities Limited and AIB-AXYS Africa Limited were upgraded to full investment bank status as part of the regulator’s strategy to expand Kenya’s full-service capital markets capacity. The new licences allow the firms to provide a broader suite of services, including corporate finance advisory, securities dealing, underwriting, debt and equity capital raising, mergers and acquisitions advisory, wealth management, investment research and fund management.
Investment banks perform an important role in financial markets by connecting businesses seeking capital with investors looking for investment opportunities. Beyond facilitating initial public offerings (IPOs) and corporate bond issuances, they advise companies on mergers, acquisitions, restructuring and other strategic transactions that shape long-term business growth. Expanding the number of licensed investment banks is therefore expected to improve competition within the advisory market while increasing businesses’ access to specialized financial expertise outside traditional commercial bank lending.
The licensing also supports Kenya’s broader objective of deepening domestic capital markets and diversifying sources of business financing. As more companies seek to fund expansion through equity and debt markets, increased advisory capacity is expected to strengthen the pipeline of listings on the Nairobi Securities Exchange and facilitate greater issuance of corporate bonds and other investment instruments. A larger investment banking industry can also contribute to improved price discovery, stronger institutional research coverage and higher levels of market liquidity.
For investors, stronger investment banking capacity enhances the efficiency of the capital markets ecosystem. Increased competition among intermediaries can improve the quality of investment research, broaden access to professional advisory services and support the development of innovative investment products tailored to both institutional and retail investors. A more developed advisory sector also strengthens confidence in corporate fundraising by improving transaction execution, governance standards and disclosure practices.
The approval of three new investment bank licences reflects Kenya’s continued commitment to building a more sophisticated financial market. By expanding corporate finance expertise and strengthening capital market intermediation, the new licences are expected to improve capital mobilization, support business growth and reinforce Nairobi’s position as one of East Africa’s leading financial centres.
