New CMA Data Reveals Why Nearly 8 in 10 Kenyan Forex Traders Still End Up Losing Money.

Online foreign exchange trading has become easier to enter than ever. With a smartphone, an internet connection and a small deposit, Kenyans can buy and sell currencies within minutes. That convenience has fuelled strong interest in FX as an alternative investment. Yet the Capital Markets Authority’s Annual Supervision Report 2025 shows a market in which losses remain the norm, not the exception.

In 2025, licensed online forex brokers submitted data covering 152,110 client accounts. Of these, 118,012 accounts lost money, equivalent to 77.58%, while only 34,098 equivalent to 22.42% recorded wins. The result was better than in 2024, when more than 90% of reported accounts were losing. Even so, the financial damage became heavier. Traders won a combined KSh1.25 billion in 2025 but lost KSh7.12 billion, leaving them with a net loss of about KSh5.87 billion. A year earlier, the net loss was KSh4.13 billion. The pattern appeared also across major platforms. Losing accounts made up 82% at Exness Kenya, 83% at Pepperstone Markets Kenya and more than 86% cent at FXPesa (EGM Securities).

Why Losses Can Mount So Quickly
The report does not identify the reasons behind these outcomes, but the nature of retail FX trading helps explain why losses can accumulate quickly. Currency markets can move sharply in response to economic data, interest rate decisions and geopolitical events, while leverage allows traders to control positions far larger than their initial deposits. This means relatively small market movements can translate into significant gains or losses, particularly for less experienced traders.
Social media may also shape how new traders view the market, with promotional content often emphasising rapid gains while giving less attention to the frequency and scale of potential losses. This can encourage some people to approach FX as a quick source of income rather than a highly speculative activity in which returns are uncertain.

The report therefore presents a mixed picture. Although the proportion of winning accounts improved in 2025, most accounts still lost money, while the total value of losses continued to rise. As online FX trading attracts greater interest, these figures reveal a clear gap between the promise of quick returns and the financial reality experienced by many traders.