Kenyans can now access the Nairobi Securities Exchange through their mobile phones following the launch of Ziidi Trader, a groundbreaking platform that transforms the M-Pesa application into a direct gateway for buying and selling shares.
The service, unveiled on Tuesday by Safaricom in partnership with the NSE and Kestrel Capital, represents a fundamental shift in how ordinary citizens can participate in Kenya’s capital markets. President William Ruto, who officiated the launch at the exchange’s Westlands headquarters, described the initiative as a decisive turning point that places wealth creation tools directly in the hands of Kenyans at the bottom of the economic pyramid.
The platform eliminates the traditional barriers that have kept millions of potential investors away from the stock market. For years, anyone wanting to buy NSE-listed shares had to navigate a cumbersome process that involved opening a Central Depository System account through licensed stockbrokers, filling extensive paperwork, completing Know Your Customer checks, and linking bank accounts before making a single trade.
Ziidi Trader changes this entirely. The service sits within the M-Pesa ecosystem as a mini application under the financial services tab, accessible to any of the platform’s more than 35 million users. Signing up takes minutes rather than the days or weeks typically required to open a traditional brokerage account.
To begin trading, investors simply navigate to the financial services section of their M-Pesa app and select Ziidi Trader. The system prompts users to activate the platform using their M-Pesa PIN, after which Safaricom sends a one-time password that unlocks access. The entire onboarding process relies on existing M-Pesa credentials, eliminating the need for document uploads or additional paperwork.
Once logged in, investors gain immediate access to comprehensive market information. The platform displays all companies trading on the NSE, complete with current stock prices, company logos, brief descriptions, and recent performance data. This level of transparency allows first-time investors to make informed decisions without requiring specialized knowledge.
The trading interface itself has been designed for simplicity. Under the trade tab, users can select any listed company and choose to either buy or sell shares. The system provides real-time information on trading activity for each counter, including available share volumes and current bid and ask prices. Investors can manually set their preferred price or use an auto-select feature that identifies the best available price based on prevailing market conditions.
Payment integration represents another significant advantage. Unlike traditional brokerage systems that require separate fund transfers, Ziidi Trader connects directly to the M-Pesa wallet. When purchasing shares, the cost is immediately debited from the available M-Pesa balance. Similarly, proceeds from share sales are instantly credited back to the wallet. This seamless connection eliminates the delays and complications associated with moving money between different accounts.
The platform also includes a portfolio management feature that provides investors with a clear view of their holdings. The portfolio tab shows the total number of shares purchased, their current market value, and the profit or loss position over time. This real-time tracking helps investors monitor their investments and make timely decisions about buying or selling.
A notable aspect of the system is its approach to share ownership. While Ziidi Trader does not require individual CDS accounts, investors do own the shares they purchase. The shares are held in an omnibus trading account managed by the broker, but a detailed ledger identifies individual ownership. This structure ensures that investors receive any dividends paid on their holdings and retain voting rights as shareholders.
The service has deliberately avoided using the unstructured supplementary service data channel. Safaricom determined that the volume of data points and inputs required for stock trading would make USSD transactions too lengthy and cumbersome, defeating the platform’s core purpose of making trading accessible and efficient. Instead, the company is betting on the widespread adoption of smartphones and 4G devices to support the onboarding of retail investors.
However, the platform carries the same risks inherent in all equity investments. Share prices fluctuate based on market conditions, and investors can lose money if the value of their holdings declines. During bull markets, investors stand to profit as share prices rise, but market downturns result in falling prices and potential losses. The platform currently does not include embedded investment advisory services, meaning investors must conduct their own research before making trading decisions. Safaricom has indicated that investment advisory features will be added in future updates.
The daily transaction limit mirrors M-Pesa’s existing cap of 500,000 shillings. Behind the scenes, all transactions are routed through Kestrel Capital, which operates the omnibus account holding shares for retail investors. While Kestrel Capital currently serves as the exclusive broker partner, company officials have suggested that additional stockbrokers may be integrated into the platform over time.
Treasury Cabinet Secretary John Mbadi, speaking at the launch, acknowledged that low retail participation in Kenya’s capital markets stems from exclusionary barriers. The previous requirement to know a stockbroker personally, maintain minimum balances, and navigate complex account opening procedures limited opportunities for large segments of the public to engage with the stock market.
Safaricom Chief Executive Peter Ndegwa emphasized that the platform extends M-Pesa’s 18-year track record of transforming how Kenyans conduct financial transactions. The company has progressively expanded the Ziidi investment suite, starting with the Ziidi Money Market Fund launched in December 2024, which allows minimum investments of 100 shillings, followed by Ziidi Shariah for Islamic-compliant investments.
NSE Chief Executive Frank Mwiti said the partnership brings the stock market closer to everyday Kenyans and makes it easier for people both locally and abroad to invest and participate actively in Kenya’s economic growth. The exchange has just over one million CDS accounts, representing a tiny fraction of the potential market that M-Pesa’s user base represents.
The launch has not been without controversy within Kenya’s stockbroking community. Some brokers have raised concerns that the NSE is encroaching on functions traditionally performed by licensed intermediaries. These tensions escalated last year, with some broker groups openly questioning the exchange’s leadership and expressing fears that the new model could weaken the established brokerage ecosystem.
President Ruto directly addressed concerns about the platform’s accessibility, encouraging small-scale traders and transport operators to use the new service. He specifically mentioned vegetable sellers and motorcycle taxi operators, saying the platform gives them a pathway to buy shares and eventually own homes without leaving their market stalls or motorcycles.
The President linked the platform’s launch to broader government objectives around privatization and capital market reforms. He noted that Kenya has not conducted a major privatization since Safaricom’s 2008 listing and said the upcoming Kenya Pipeline Company public offer would test whether the new system can facilitate widespread public participation without requiring people to travel to major cities.
Ziidi Trader operates under the oversight of the Capital Markets Authority, ensuring investor protection, transparency, and market integrity. The regulatory framework includes requirements for clear disclosures and investor education to support informed long-term investing decisions.
The platform’s success will ultimately depend on whether it can convert awareness into action. Street surveys conducted by Safaricom in Nairobi earlier this month revealed a pattern of familiarity without understanding. Most respondents said they had heard of the Nairobi Securities Exchange but could not explain how it works or how to participate. This knowledge gap represents both the primary challenge and the greatest opportunity for Ziidi Trader.
Financial inclusion advocates view the initiative as potentially transformative. By integrating equity market access into a platform that millions of Kenyans already use daily for basic transactions, Ziidi Trader could fundamentally alter savings behavior and redirect dormant retail funds into productive investments. The platform’s ability to handle high transaction volumes will test both M-Pesa’s cloud-native infrastructure and the NSE’s matching engine capacity.
For Safaricom, the launch marks another step in its evolution from a telecommunications company into a comprehensive digital financial services provider. The company has made substantial investments in transforming M-Pesa into an AI-enabled platform designed for scale, resilience, and security. These upgrades strengthen fraud detection, improve reliability, and provide the foundation for introducing innovative services like Ziidi Trader.
The initiative aligns with Kenya’s broader financial inclusion agenda and could serve as a model for other African markets seeking to democratize access to capital markets. Whether it achieves its ambitious goal of bringing millions of new retail investors into the NSE will depend on sustained investor education, robust safeguards around pooled account structures, and continued regulatory oversight to ensure transparency and protection for small investors.
