Kenya’s mobile money ecosystem has taken another leap forward with the launch of Ziidi Trader, a feature embedded within the Safaricom M-Pesa platform that allows millions of Kenyans to buy and sell shares listed on the Nairobi Securities Exchange (NSE) directly from their phones.
The rollout — a collaboration between Safaricom, the NSE and licensed broker Kestrel Capital — aims to lower barriers to stock market participation, particularly for retail and first-time investors who have historically been deterred by paperwork and account opening requirements.
From Mobile Money to Market Access
Unlike the traditional process where investors must open a Central Depository System (CDS) account through a stockbroker and use M-Pesa only to fund trades, Ziidi Trader integrates trading directly into the M-Pesa app. Investors access the service via the financial services menu within M-Pesa, and use their existing M-Pesa credentials, including their mobile money PIN, to opt into the platform.
Once registered, users can browse listed companies, view live bid and ask prices, place orders to buy or sell shares, and track their portfolios — all without leaving the mobile interface.
How the Trading Process Works
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Sign Up – Investors launch the Ziidi Trader mini-app within M-Pesa and activate the service using their M-Pesa PIN. No additional paperwork or document uploads are needed, as the system uses existing M-Pesa know-your-customer (KYC) data.
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Market View – Once logged in, investors see all equities traded on the NSE, complete with company logos, price movements and trading volumes.
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Place Orders – Users select the shares they want to buy or sell and can choose their preferred price or let the platform suggest the best price based on current market activity.
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Settlement – Payment for purchases is deducted directly from the investor’s M-Pesa wallet. Sale proceeds are credited back to M-Pesa once the trade settles.
Before this innovation, investors had to open a CDS account, provide detailed personal information including next of kin and bank account details, and wait for verification — a process that could take days or weeks. In contrast, Ziidi Trader sign-ups take just minutes.
Ownership and Custody
Although individual CDS accounts are not required for investors using Ziidi Trader, shares bought through the platform are held within an omnibus account managed by the broker. Each investor’s ownership is recorded on an individual ledger maintained by the broker, ensuring rights to dividends and voting are preserved.
Why This Matters
Analysts say this innovation could be transformative for Kenya’s capital markets by democratising access to equities. With M-Pesa’s widespread use — estimated at over 35 million users — the integration opens up investing to a much larger segment of the population.
For years, the stock market in Kenya has been perceived as a preserve of wealthy or institutional investors due to procedural hurdles and minimum account requirements. By lowering these barriers, Ziidi Trader mirrors Kenya’s 2017 mobile bond trading success and could significantly expand retail participation.
Risks and Considerations
Despite its convenience, investing in equities carries risks. Share prices fluctuate with market conditions, and investors can lose money if prices decline. The platform currently does not provide embedded investment advice, meaning users must undertake research to make informed decisions.
Looking Ahead
The launch of Ziidi Trader may position Kenya as a regional leader in mobile-enabled securities trading. As more users adopt the platform and market intermediaries adjust to the new model, the structure could evolve further — potentially with more brokers joining the ecosystem and additional tools for investor education and support.
