Pezesha exits from the CMA Regulatory Sandbox

Pezesha has successfully tested a crowdfunding platform

Nairobi, 12 October 2020…The Capital Markets Authority (CMA) has granted a ‘No Objection’ to Pezesha Africa Limited (Pezesha) to operate its debt-based crowdfunding platform in the Kenyan capital markets, after a successful one-year testing period in the Regulatory Sandbox, which was launched in March 2019. A Crowdfunding Platform is a website that allows firms and entrepreneurs to raise and collect funds from investors, contributors and donors.

The No Objection has been issued subject to Pezesha’s maintenance of existing compliance requirements including; an appropriate financial risk management framework, adequate local capital market transaction control procedures and efficient, orderly and fair operations of the business segment, product or intermediaries. This is subject to the finalization of a Comprehensive Regulatory Framework to operate a Debt-Based Crowdfunding Platform in Kenya’ in the medium term.

The CMA Acting Chief Executive Mr. Wyckliffe Shamiah, said; ‘‘We are glad to note that Pezesha effectively tested its crowdfunding innovation and achieved its testing objectives and control boundaries between July 2019 and July 2020. This positive outcome is a clear demonstration of the unique opportunities arising from the sandbox environment and potential for scaling up innovative ideas. ’, The success of Pezesha’s testing phase underlines the Authority recognition of the need to nurture innovations that can transform the fundraising model in the capital markets’’.

“The ‘No Objection’ is timely given the impact of Covid-19 on the economy. At Pezesha, we believe the approval highlights our commitment to build trust of all key stakeholders within our digital ecosystem and the capital markets. Our goal is to introduce innovative products for investors aimed at providing SMEs access to capital. We will do this by maintaining the highest standards of governance, and transparency as we continually derisk the value-chain for all stakeholders. We are excited about this new phase of our company’s growth’’, said Pezesha Chief Executive Officer, Hilda Moraa.

Alternative capital raising initiatives including crowdfunding platforms provide a different way to raise funding for large companies, small enterprises and retail borrowers through equity, debt or a hybrid model. To ensure the development of a robust, facilitative and responsive policy and regulatory framework for crowdfunding in Kenya, CMA is firmly committed to review and adopt global best standards and monitor the growth and activities of the crowdfunding space in Kenya. This will ensure prudent management of investor funds and risk mitigation as well as ensure efficient, orderly, and fair operation of this segment and players.



The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest. For more information, please contact: Antony Mwangi, Head of Corporate Communications on This email address is being protected from spambots. You need JavaScript enabled to view it.


Pezesha was setup in late 2016 with headquarters in Kenya, as a holistic digital financial enabler that connects underserved small and medium sized businesses to working capital among other financial services and also provides financial education through a collaborative approach where banks, MFIs and other sophisticated financial institutions or networks can connect on our platform to be matched with quality SMEs credit scored using our proprietary credit scoring technology, Patascore. In Pezesha, we believe our position as a capital enabler provides efficiencies for the African ecosystem, ensuring productivity through access to working capital for SMEs and providing optimal capital utilization for Banks, MFIs and other financial institutions to deepen the capital markets. For more information, please contact us at This email address is being protected from spambots. You need JavaScript enabled to view it.

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