The Nairobi Securities Exchange (NSE) is ushering in a new era of mobile investing, allowing Kenyans to buy and sell shares straight from M-Pesa, effectively cutting traditional brokers out of the front line.
Safaricom has appointed Kestrel Capital as the exclusive broker to execute trades on the platform, marking a sharp break from the long-standing model where investors had to transact through individual stockbrokers. Kestrel, ranked 11th out of 22 brokers by commission earnings in the half year to June, will sit behind the scenes as the engine of the new service, branded Ziidi Trader.
The initiative mirrors the mobile bond trading system introduced in 2017, which positioned Kenya as a global pioneer in phone-based bond purchases. Leading brokerage houses are angling to join the new set-up in due course, keen to capture commissions from what is expected to be a surge in retail participation.
Under Ziidi Trader, set for launch by President William Ruto, investors will purchase shares directly via the M-Pesa app. Unlike the traditional framework, users will not need to open individual Central Depository System accounts. Instead, funds from multiple investors will be pooled into a single omnibus CDS account managed by Kestrel Capital. The exchange believes this structure will streamline trading, speed up execution and lower barriers to entry.
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Kestrel, which oversaw a three-month pilot phase, stands to benefit first from the innovation. Its chief executive, Francis Mwangi, has indicated that additional brokers may be integrated later, though no timetable has been set. Currently, the top broker by commissions is Dry Associates, followed by Standard Investment Bank, Faida Investment Bank, EFG Hermes Kenya and Capital A Investment Bank.
The platform is built into the M-Pesa app and relies on Safaricom’s existing know-your-customer data. Users authenticate transactions with their M-Pesa PINs and must opt into the Ziidi Trader mini-application before trading. Investors will be able to view listed companies, logos, market data and live bid and ask prices. Transactions are subject to M-Pesa’s daily cap of Sh500,000.
At the back end, Kestrel will consolidate trades into its single CDS account and reconcile transactions using daily trading files from the NSE. By eliminating the need for new CDS accounts, the exchange aims to simplify onboarding and widen access. While the NSE has just over one million CDS accounts, M-Pesa boasts more than 35 million users, a vastly larger pool the exchange hopes to tap within a few years.
The development builds on the success of Ziidi Money Market Fund, launched by Safaricom in partnership with Standard Investment Bank and ALA Capital. Approved in late 2024, the fund had attracted 1.15 million investors by September 2025, accounting for nearly half of Kenya’s unit trust customer base. Safaricom earned Sh100 million in revenue from the fund, equivalent to about 0.6 per cent of assets under management.
For Safaricom, Ziidi Trader opens another revenue stream within its financial services division as it continues to diversify beyond person-to-person transfers. NSE chief executive Frank Mwiti has argued that leveraging M-Pesa removes much of the friction associated with opening trading accounts, including paperwork and broker selection.
The exchange’s five-year plan targets at least nine million active retail investors by 2029, including Kenyans in the diaspora. Yet the concept of direct mobile trading has not been without controversy. Some brokers have accused the NSE of sidelining them, tensions that escalated into calls for Mr Mwiti’s removal earlier this year.
Despite a strong market rally over the past two years, new investor numbers have barely budged. The exchange is now wagering that putting share trading in the palm of the nation’s hand will finally draw the masses into the equity market. In a country where nearly every adult carries M-Pesa in their pocket, the bourse is betting that accessibility, not appetite, has been the missing ingredient.
