Kenya empowers digital trading by licensing Safaricom, Airtel Money

This regulatory approval, announced on Monday, is set to transform Kenya’s investment landscape by allowing millions of mobile users to access regulated capital markets directly from their phones.

By Dumisani Sigogo

Capital Markets Authority CEO Wyckliffe Shamiah highlighted the approvals as an important step in aligning capital markets.

The Capital Markets Authority of Kenya (CMA) has formally approved Safaricom and Airtel Money Kenya Limited to operate as Intermediary Service Platform Providers (ISPP).

This regulatory authorisation, announced on Monday, is expected to redefine Kenya's financial landscape by allowing millions of mobile users to gain direct access to regulated capital markets via their phones.

The licensing of Safaricom and Airtel Money as ISPPs represents an evolution in Kenyans' interactions with the Nairobi Securities Exchange. As intermediaries, these platforms will make it easier to sell and distribute approved Collective Investment Schemes, such as money market funds and shares, by bridging the gap between fund managers and retail investors.

Following the successful pilot of its Money Market Fund Ziidi, Safaricom plans to completely incorporate trading functionalities into the M-PESA initiative. Users will be able to register accounts and trade in under two minutes for as low as KES 100.

Airtel Money, on the other hand, is expected to use its growing subscriber base to provide similar investment options, thereby creating a more competitive and diverse digital finance ecosystem for Kenyans.

CMA CEO Wyckliffe Shamiah highlighted the approvals as an important step in aligning capital markets with the national goal of boosting the savings-to-GDP ratio.