As Share Trading Enters M-Pesa, the NSE Chases New Investors While Brokers Wonder Where They Now Stand

Participation in the Nairobi Securities Exchange has for years followed a familiar sequence. An investor chose a broker, opened a Central Depository System account, filled out paperwork, then waited. The process filtered who entered the market and how often they traded. The arrival of share trading inside the M-Pesa app alters that experience at the point where most friction used to sit.

Ziidi Trader places equity trading inside a tool already used daily by more than 35 million people. The argument behind it is straightforward. If payment infrastructure already exists, investing can sit on top of it. What changes is not only access, but the relationship between investors and intermediaries who historically controlled entry into the market.

Safaricom’s decision to appoint Kestrel Capital as the sole broker at launch has drawn attention for that reason. The platform reduces the visible role of stockbrokers at the front end while concentrating execution in one firm at the back end. Investors transact through their phones, while brokerage functions move into infrastructure rather than customer relationships.

That rearrangement carries consequences beyond convenience.

A Market That Grew Without New Participants

The NSE has experienced a rally across the past 2 years, yet participation numbers have barely moved. Data from the Capital Markets Authority showed investor accounts increasing by only 0.2 percent, or 2,621 investors, to about 1.3 million over that period. The market rose, but new entrants did not follow in meaningful numbers.

This disconnect has long frustrated regulators and exchange officials. Equity markets depend on depth. Liquidity improves when more participants trade in smaller sizes and at higher frequency. Kenya’s equity market instead became concentrated among institutional investors and a relatively stable retail base.

Mobile money offers a different path. The logic mirrors what happened in government bonds in 2017, when mobile access opened a market previously dominated by larger investors. Ziidi Trader attempts something similar with equities, but equities carry different risks. Prices move faster, sentiment plays a larger role, and retail enthusiasm can fade quickly when losses appear.

The question is whether easier access produces sustained participation or simply a brief wave of curiosity.

The Broker Question Returns

Stockbrokers have long operated as gatekeepers. They handled onboarding, advised clients, and earned commissions from transactions. Ziidi Trader weakens that structure by removing the need for individual CDS accounts and pooling investor holdings into a single omnibus account managed by Kestrel.

From a technical standpoint, the arrangement simplifies execution. From an industry standpoint, it introduces tension. Top brokers see potential commission growth if retail volumes expand, yet they also face the prospect of losing direct relationships with new investors.

The debate between the NSE and brokerage firms did not begin with this launch. Disagreements over market structure surfaced publicly in mid-2025, including calls for leadership changes at the exchange. The underlying concern remains unchanged. If access moves into platforms controlled by telecom infrastructure, brokers risk becoming utilities rather than advisers.

That outcome is not inevitable, but it sits in the background.

Convenience and Concentration

Ziidi Trader depends heavily on existing M-Pesa infrastructure. Know-your-customer verification relies on Safaricom’s data. Transaction approvals use the mobile money PIN. Daily trades are capped at the M-Pesa limit of Sh500,000. Each element removes a layer of friction.

At the same time, it concentrates power. One telecom operator controls the interface, one broker processes trades at launch, and retail investors interact with the market through a single channel. Efficiency increases, yet diversity of access narrows.

Kenya’s financial sector has seen similar dynamics before. Mobile money simplified payments but also consolidated influence around dominant platforms. In capital markets, where price discovery relies on broad participation, concentration introduces a different set of questions. Market access becomes dependent on platform policy as much as regulation.

None of this prevents expansion. It simply changes where influence sits.

Retail Investing Meets Mobile Habits

The success of Ziidi Money Market Fund offered a preview. Approved in November 2024, the fund attracted about 1.15 million customers by September 2025. Many were first-time investors. Low entry thresholds and familiar interfaces lowered hesitation.

Equities are less forgiving than money market funds. Returns fluctuate daily. Losses are visible immediately. The behavioural side of investing becomes more pronounced when trading sits next to everyday payments on the same phone.

There is also a cultural dimension. Kenyan retail investing has often been episodic, driven by initial public offerings or market rallies rather than continuous engagement. Mobile access may increase activity, but it does not automatically build long-term investment habits. Education, trust, and market performance still determine whether investors stay.

Safaricom’s Expanding Financial Role

For Safaricom, Ziidi Trader fits a broader pattern. Revenue growth increasingly depends on financial services rather than person-to-person transfers alone. The company earned about Sh100 million from the Ziidi MMF, roughly 0.6 percent of the asset base, modest in isolation but significant as proof of concept.

Trading adds another layer of fees and engagement. Every additional financial function strengthens the ecosystem effect around M-Pesa. Users who invest through the platform are less likely to leave it.

That creates alignment between commercial incentives and market expansion. It also raises long-term questions about how much of Kenya’s financial activity flows through a single digital channel.

An Opening Rather Than a Conclusion

The NSE wants 9 million active retail investors by 2029. Ziidi Trader is positioned as one route toward that ambition. Whether it achieves it depends less on technology and more on behaviour. Convenience can bring people in. Retention depends on experience once they arrive.

If retail participation grows, brokers may adapt by focusing on advisory services and institutional trading. If activity concentrates around short-term trades, volatility could increase without deepening the market. If participation broadens steadily, the exchange gains liquidity that has been missing for years.

For now, the change is structural rather than symbolic. The trading floor has moved closer to the handset. What follows will depend on how investors respond once buying shares feels as routine as sending money.

[Secure Your Seat at Africa Tech Summit Nairobi 2026 | February 11–12 here] Use code TTRENDS10 at checkout to save 10% on your pass and join the leaders building Africa’s $1 trillion cross-border payment future.

Go to TECHTRENDSKE.co.ke for more tech and business news from the African continent.

Follow us on WhatsApp, Telegram, Twitter, and Facebook, or subscribe to our weekly newsletter to ensure you don’t miss out on any future updates. Send tips to editorial@techtrendsmedia.co.ke