Do You Need ICIFA Registration to Give Investment Advice?

Anyone who gives investment advice in Kenya for a fee has to ask whether they need to be registered with the Institute of Certified Investment and Financial Analysts (ICIFA). The Investment and Financial Analysts Act (Cap. 542) makes it a criminal offence to practise as a certified investment and financial analyst without registration and a current practising certificate or annual licence. This article explains what the Act treats as practice, who is exempt, how registration works, and how ICIFA registration differs from a Capital Markets Authority (CMA) licence.

The practising requirement

Section 20(1) of the Act provides that no person shall practise as a certified investment and financial analyst unless registered as one and holding a practising certificate or an annual licence from the Registration Committee that is in force. Under section 20(2), a person who contravenes section 20(1) commits an offence and is liable on conviction to a fine of up to KES 500,000, imprisonment of up to two years, or both.

The Act, as amended in 2020, adds further roles that require registration, a practising certificate and an annual licence:

• becoming a Chief Investment Officer, or head of an investment department or function, in a firm investing public funds or a firm in the practice of investment and financial analysis (section 20(1A));
• verifying, certifying and advising on the investment of funds in a public entity or such a firm (section 20(1B)); and
• verifying investment returns declared by such a firm (section 20(1C)).

The criminal penalty in section 20(2) refers only to subsection (1). How the later subsections are enforced is not spelt out in the section itself.

What counts as practice

Section 21(1) sets a broad test. A person practises as an investment and financial analyst if, for remuneration or other benefits, and whether alone or in partnership, they:

• engage in the practice of investment and financial analysis, or hold themselves out to the public as entitled to do so;
• offer to perform or perform services involving investment advice or financial decisions, investment transactions, books, accounts or records;
• offer to perform or perform services involving the verification or certification of investments and related advice; or
• engage in any other practice or service that may be prescribed.

The second limb is wide enough to catch most paid advisory work touching investments. Note the drafting point, though: section 20(1) prohibits practising as a certified investment and financial analyst, while section 21(1) defines practice as an investment and financial analyst. How far the offence reaches someone who never claims to be certified is a question of interpretation, and anyone relying on that gap should take advice first.

Who is exempt

Two provisions narrow the requirement.

Salaried employees. Under section 21(2), a salaried employee of the Government or of any other person does not practise as an investment and financial analyst only because they do the work described in section 21(1) as part of that employment. An analyst on the payroll of a bank, pension scheme or company is therefore not practising simply by doing their job. Our article on the salaried employee exemption covers its limits.

Other professions. Section 21(3) allows an advocate, a professional secretary, a professional accountant, or a person authorised by another written law, to undertake the work of an investment consultant, investment adviser or financial consultant only in the course of practising their own profession. The exemption follows the profession: an accountant who sets up a stand-alone investment advisory service is outside it.

How registration works

Registration and the right to practise are separate steps.

1. Registration. Under section 16, a person qualifies if they have passed the final certified investment and financial analysts examination of the Kenya Accountants and Secretaries National Examinations Board (KASNEB), or hold a qualification that the ICIFA Council has approved by Gazette notice in consultation with KASNEB. The Council may also require proof of adequate knowledge of Kenyan law, including tax and financial markets law, adequate experience and good character.
2. Practising certificate. A registered person (see our guide to practising certificates and annual licences) applies to the Registration Committee under section 22. Under section 23, the certificate is issued if the applicant is registered, has received the prescribed instruction from a practising certificate holder, and meets any other prescribed requirements. It lapses if registration ends or is suspended.
3. Annual licence. A certificate holder who intends to practise as a firm, as a sole practitioner or in partnership, applies for an annual practising licence under section 24. The licence runs from the date of issue to 30 June and must then be renewed.

The Act defines a “firm” in section 2 as a sole proprietorship, partnership, or registered company established by members in practice.

ICIFA registration and the CMA licence

ICIFA registration is a professional qualification for individuals. The CMA investment adviser licence under section 23 of the Capital Markets Act authorises a business. One does not replace the other. The two regimes also meet: under regulation 13(c) of the Capital Markets (Licensing Requirements) (General) Regulations, 2025, a licensed investment adviser’s representatives must have at least three years’ relevant experience and be members of a professional body. Our guide to the investment adviser licence under the 2025 Regulations covers the CMA side.

Registration also brings members under ICIFA’s disciplinary jurisdiction. Section 26 lists the forms of professional misconduct, including rules on fees, fee sharing and how business is introduced, and section 29 sets out the sanctions, from a reprimand to fines of up to KES 1 million and cancellation of registration. Firms should review their engagement and fee models before any staff member registers.

If you hold the CFA charter rather than the CIFA qualification, see our guide to joining ICIFA as a CFA charterholder.

Frequently asked questions

This article is general information on Kenyan law as at its publication date, not legal advice. Reading it does not create an advocate and client relationship.