The Capital Markets Authority (CMA) has distanced itself from claims that it plans to revoke the licences of several investment schemes over reports of misleading Kenyans by offering purported high returns.

🇰🇪 Breaking It Down

In a brief statement on Tuesday, July 7, CMA flagged a viral circular alleging that it had warned Money Market Fund (MMF) and Special Fund schemes against abnormally high returns.

The fake notice alleged that CMA had identified several licensed collective investment schemes offering 'abnormally high returns' inconsistent with prevailing market conditions.

According to the fabricated statement, affected investors were advised to withdraw their funds immediately and avoid making further investments in the named schemes.

📌 What You Need to Know

The notice also purported to warn that investors who ignored the directive would do so at their own risk as the Authority moved to revoke licences of the said schemes.

However, the CMA has categorically denied such allegations, emphasising that no decision has been made to revoke the licences of any licensed investment schemes.

CMA further cautioned the public against falling victim to misinformation, adding that all regulatory announcements are published through its official website and verified social media platforms.

The clarification comes as a major relief to investors who had feared for the safety of their funds in various investment schemes.

It also comes as thousands of Kenyans continue to flock to MMFs and Special Funds as investment solutions following their growing popularity in the past few years.

The two are among the fastest-growing investment products in Kenya, attracting thousands of retail investors due to their relatively low risk, ease of access, and competitive returns.

📰 Source: Kenyans.co.ke