Kenya's capital markets regulator has licensed two major telecom companies to provide investment platforms. The Capital Markets Authority approved Safaricom and Airtel Money as Intermediary Service Platform Providers. This move aims to boost competition and widen digital access to regulated financial products like stocks and bonds.
The authority also licensed a firm called Capital.com to operate as an online foreign exchange dealing broker. This allows it to act as a market maker in forex trading under existing regulations.
These new ISPPs will offer mobile and web platforms that simplify investing for regular users. They streamline processes like account opening, identity checks, and portfolio tracking. Safaricom is preparing to launch a feature called Ziidi Trader within its M-Pesa app next January, currently in pilot testing. This will let users trade shares on the Nairobi Securities Exchange directly from their phones.
The approvals are part of a broader fintech push by the regulator, which recently licensed two other local platforms. The entry of Safaricom and Airtel, with their combined user base exceeding fifty-four million mobile money accounts, could significantly increase retail investment. Analysts expect this to pressure traditional brokers to digitize their services while attracting younger, tech-oriented investors previously disconnected from the formal market.
The authority also licensed a firm called Capital.com to operate as an online foreign exchange dealing broker. This allows it to act as a market maker in forex trading under existing regulations.
These new ISPPs will offer mobile and web platforms that simplify investing for regular users. They streamline processes like account opening, identity checks, and portfolio tracking. Safaricom is preparing to launch a feature called Ziidi Trader within its M-Pesa app next January, currently in pilot testing. This will let users trade shares on the Nairobi Securities Exchange directly from their phones.
The approvals are part of a broader fintech push by the regulator, which recently licensed two other local platforms. The entry of Safaricom and Airtel, with their combined user base exceeding fifty-four million mobile money accounts, could significantly increase retail investment. Analysts expect this to pressure traditional brokers to digitize their services while attracting younger, tech-oriented investors previously disconnected from the formal market.
