Kenyan telecoms operator Safaricom has unveiled a new stock-trading feature that allows millions of M-Pesa users to buy and sell shares listed on the Nairobi Securities Exchange (NSE) directly from their mobile phones.
The new service, known as Ziidi Trader, is embedded within the M-Pesa App and enables customers to trade shares without opening a traditional brokerage or Central Depository and Settlement Corporation (CDSC) account.
The move is expected to significantly broaden retail participation in Kenya’s capital markets.
The launch immediately sparked interest and questions among Kenyans keen to understand how the platform works and how they can start investing.
M-Pesa currently serves about 35 million users in Kenya and already offers savings, banking and investment products.
With Ziidi Trader, Safaricom has partnered with Nairobi-based brokerage firm Kestrel Capital to facilitate the trading of NSE-listed shares.
Since its launch, Ziidi Trader has reportedly accounted for an average of 40 per cent of trades on the NSE, representing about five per cent of total daily trading volume, an indication of strong uptake among small retail investors.
President William Ruto welcomed the innovation, describing it as a major step in democratising access to capital markets.
“It opens the doors of market participation wider than ever before, dismantling long-standing barriers that have locked out many willing investors and bringing opportunity closer to all citizens,” he said.
The President said the platform aligns with the government’s Bottom-Up Economic Transformation Agenda, which seeks to expand economic opportunities for low-income earners and those previously excluded from formal investment channels.
“I believe in the capital markets, and I believe in the potential of the capital market to work with the public sector to unlock the potential of this great nation,” he said.
Ruto directed the National Treasury to work with capital market stakeholders to remove any barriers that might hinder traders joining Ziidi Trader and pledged continued reforms to strengthen the NSE.
He said deliberate government reforms over the past two years have helped the exchange record one of its strongest performances in more than a decade.
Ziidi Trader is a mini-app within the M-Pesa App that allows users aged 18 years and above to buy and sell NSE-listed shares after completing onboarding and acknowledging the investment risks.
Unlike traditional investing, users do not need a CDSC account. Trading is done through what is known as an omnibus account.
An omnibus account is a single account that consolidates investments for multiple investors.
In this case, Safaricom holds a CDSC account through its partner broker, Kestrel Capital and individual trades are recorded within the platform under each customer’s profile.
Because trading is conducted through an omnibus account, users will not receive a personal CDSC number.
Shares purchased via Ziidi Trader will remain within the Ziidi Trader system and will not be consolidated with shares held in a separate personal CDSC account.
Once a user buys shares, they become the beneficial owner and can view their portfolio and statements directly on the Ziidi Trader app.
To purchase shares, users must open the M-Pesa App and access the Ziidi Trader mini-app. Under the “Trade” option, they select the security of interest from the list of NSE-listed companies.
They then tap “Buy,” enter the price and quantity of shares they wish to purchase, review the trade summary, and tap “Buy Shares.” After selecting “Proceed,” they confirm the transaction by entering their M-Pesa PIN.
A buy order is the transaction initiated to purchase shares. However, order execution is not guaranteed. Trades depend on market matching , meaning there must be a willing buyer and seller at the indicated price.
Investors can choose between the “Best Price” or setting their “Own Price.” The Best Price refers to the most favourable price available in the market at the time the order is placed.
When buying shares, this means the lowest price a seller is offering. When selling, it means the highest price a buyer is willing to pay.
Alternatively, users can set their own price. When buying, this means choosing the maximum price they are willing to pay per share. When selling, it is the minimum price they are willing to accept.
Selling shares follows a similar process. Under the “Trade” tab, users select the security they wish to sell, tap “Sell,” enter the price and quantity, review the summary, tap “Sell Shares,” proceed and confirm the transaction with their M-Pesa Pin.
As with buying, selling is not guaranteed and depends on order matching in the market.
Once a sell order is successfully matched, funds are disbursed immediately to the user’s M-Pesa account.
Users receive two notifications: one confirming receipt of the trade request and another confirming the processing of the order and its outcome, whether fully or partially fulfilled.
The NSE market operates Monday to Friday between 9.30 am and 3.00 pm. When markets are closed, users can still log into the app to view their portfolios and plan future trades.
Safaricom has clarified that Ziidi Trader does not guarantee profits and does not provide investment advice. As with all stock market investments, returns depend on market performance and price movements.
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