The Best Prop Firms in Kenya for 2026, Compared

What does the Capital Markets Authority say it regulates?

The Capital Markets Authority (CMA) describes itself as an independent public agency established by an Act of Parliament, Cap 485 A. It says it is charged with the prime responsibility of supervising, licensing and monitoring the activities of market intermediaries, including the Stock Exchange and the Central Depository and Settlement Corporation (CDSC).

The same page says the CMA also regulates all licensees under the Capital Markets Act, including online forex, commodities and regulated exchanges. It lists its regulatory functions as:

• licensing and supervising all the capital market intermediaries
• ensuring proper conduct of all licensed persons and market institutions
• regulating the issuance of the capital market products
• promoting market development through research on new products and institutions
• promoting investor education and public awareness
• protecting investors' interest

The page's top menu links to a List of Licensees.

Above is how the CMA describes itself. Its page does not mention prop firms, funded accounts or simulated trading evaluations, so this page gives no view on whether any prop firm needs a CMA licence. Nothing here is legal advice.

What does Kenya's Virtual Asset Service Providers Act, 2025 provide for?

Kenya Law publishes the Virtual Asset Service Providers Act, 2025 (Act No. 20 of 2025). Its long title describes it as an Act to provide for the legal framework to license and regulate the activities of virtual asset service providers. The page records that the Act was assented to on 15 October 2025 and commenced on 4 November 2025.

Section 3 gives its main object as the legislative framework to license and regulate the activities of virtual asset service providers in and from Kenya, and section 4(1) says it applies to virtual asset service providers offering virtual asset services in Kenya. Section 5 names the Capital Markets Authority and the Central Bank of Kenya as the relevant regulatory authorities and lets the Cabinet Secretary designate other public bodies.

Section 2 defines a virtual asset as a digital representation of value that can be digitally traded or transferred and can be used for payment or investment purposes, and a virtual asset service provider as a company licensed under the Act to carry on the business of virtual asset services. Section 8(2) says a person shall not carry on, or purport to carry on, the business of virtual asset services unless licensed by the relevant regulatory authority under the Act.

The summary follows the text of the Act. Whether the Act reaches any payment a trader receives is not addressed here, and this page cites no regulator's view on it. This summary is not legal advice.

What does the KRA say about individual income tax?

The Kenya Revenue Authority (KRA) says individual income tax is charged for each year of income on all the income of a person, whether resident or non-resident, which accrued in or was derived from Kenya. It says a return for a year of income can be filed between 1 January and 30 June of the following year, online through iTax.

The KRA's table of individual tax bands, which it dates with effect from 1 July 2023, sets these rates on annual income:

• 10% on the first KES 288,000
• 25% on the next KES 100,000
• 30% on the next KES 5,612,000
• 32.5% on the next KES 3,600,000
• 35% on all income above KES 9,600,000

The page also lists a personal relief of KES 28,800 per year, which it says every resident individual is entitled to.

That is what one KRA page says. The page does not mention prop firms, trading or payouts from a firm abroad, so this page cannot say whether or how such a payout is taxed. Take advice from a tax agent registered with the KRA before you file.

What does the KRA say about instalment tax?

The KRA describes instalment tax as estimated income tax paid periodically, in anticipation of the tax payable for a year of income, in four equal instalments before the year ends. Its page says it is payable by individual taxpayers who have a tax liability, not fully covered under PAYE, of over KES 40,000 for any year, and that it is not payable by persons subject to turnover tax.

According to the page, each instalment is 25% of the tax due and is payable on the 20th day of the 4th, 6th, 9th and 12th months of the year of income, with a different schedule for taxpayers in the agricultural sector.

The page gives two ways to work out the amount. On the prior year basis, the prior year's tax payments are multiplied by 110 per cent. On the current year basis, which it describes as used especially for new businesses or those that were in losses and turned to profit, instalment tax is determined by estimating the current year's profit and the tax payable on it.

It states the penalty for underpaying instalment tax as 20% of the difference between the instalment tax payable for a year of income and the instalment tax actually paid.

That is what a second KRA page says. It does not mention prop firms, trading or payouts from a firm abroad, so this page cannot say whether instalment tax applies to any payout. Ask a tax agent before the first due date.