How Ziidi Trader will eliminate barriers, help turn M-Pesa users into equity investors

• Safaricom-backed Ziidi Trader, a first-of-its-kind mobile investment platform removes paperwork, cuts costs, and lets users trade shares in seconds all through the phone in their pocket.
• By leveraging existing M-PESA identities, the app eliminates the most daunting hurdle for first-time investors: opening a formal CDS account.
• With foreign investors dominating trading at the Nairobi bourse, Ziidi Trader aims to catalyse local participation and give everyday Kenyans a stake in the nation’s economic growth.

In what is being hailed as a seismic shift for financial inclusion, Ziidi Trader, a new mobile-first stock trading platform is poised to turn every M-PESA user into a potential shareholder in Kenya’s listed companies.

Ziidi Trader, which is backed by telecom giant Safaricom PLC and the Nairobi Securities Exchange (NSE), officially launched on Tuesday after a test run seeking to bridge vast gap between Kenya’s ubiquitous mobile money ecosystem and participation in the formal capital markets.

“Over the past 18 years, M-PESA has evolved from a simple money transfer service into a comprehensive digital financial ecosystem that powers everyday life for millions. With Ziidi Trader now live on the M-PESA platform, we are taking the next step in that evolution, extending M-PESA beyond payments and short-term transactions into long-term wealth creation through securities trading on the NSE,” explained Safaricom Chief Financial Officer Dilip Pal during the launch on Tuesday.

He added, “Our ambition is to build Africa’s leading purpose-led digital financial ecosystem, one that seamlessly brings together payments, savings, credit, investments, government services, developers, and partners under a single, trusted platform.”

“This innovative platform will unlock access to the capital markets for millions of Kenyans, significantly expanding participation and bringing investing within easy reach of everyday users,” the NSE stated.

For decades, the Nairobi bourse has been perceived as a domain for the financially elite, foreign institutions, and those willing to endure cumbersome paperwork and lengthy approval processes. Ziidi Trader is calibrated to tear down this perception overnight.

Ziidi Trader platform allows any verified M-PESA user to buy and sell equities listed on the NSE through a streamlined mini-app interface, bypassing traditional account openings and leveraging their existing mobile money identity as their passport to investment.

Ziidi Trader: The Mechanics of Inclusion

The technical and regulatory architecture of Ziidi Trader will see Kestrel Capital serves as the executing broker. Crucially, Kestrel operates a pooled omnibus structure, meaning users do not open individual Central Depository System (CDS) accounts. Instead, the platform relies on Safaricom’s existing M-PESA Know-Your-Customer (KYC) credentials to onboard users and facilitate trades. This single feature eliminates what has historically been the most significant procedural barrier for retail investors.

“If you can M-PESA, you can now invest in shares at the NSE. A simpler and more accessible way to invest on the Nairobi Securities Exchange through the M-PESA App,” noted Krestel Capital on X.

On settlement of proceeds, while standard NSE equity settlement operates on a T+3 basis (transaction date plus three days), Ziidi Trader user accounts will be credited as soon as trades are matched on the exchange.

Kestrel Capital assumes the responsibility for managing and completing the subsequent settlement cycle, insulating the user from the complexity and wait time.

Pricing for the People

Ziidi’s brokerage fees are set at approximately 1.5 per cent per trade, undercutting prevailing retail rates that commonly range between 1.8 per cent and 2.1 per cent. Industry analysts suggest this aggressive pricing is a volume play, betting on mass adoption from M-PESA’s vast user base to offset thinner margins per transaction.

Further enhancing its accessibility, Ziidi Trader removes all wallet funding and withdrawal charges for moving money between a user’s M-PESA wallet and their trading environment. This creates a frictionless financial loop, encouraging experimentation and regular trading.

Beyond the Trade: Building Financial Literacy

Ziidi Trader is also designed to be more than a simple trading portal. The platform integrates corporate actions, portfolio analytics, and real-time data on top movers and counter-level performance directly within the app. This empowers users with the information needed to make informed decisions, fostering a new generation of financially savvy Kenyans.

Proceeds from share sales or dividend payments are automatically returned to the user’s M-PESA wallet, ensuring immediate liquidity. Users also have the option to direct these funds into affiliated products, such as the Ziidi Money Market Fund (MMF), creating a seamless pathway from trading to broader wealth management.

A Strategic Imperative for the NSE

The launch of Ziidi Trader addresses a critical strategic challenge for the Kenyan capital markets: over-reliance on foreign capital. Foreign investors currently account for roughly 65 per cent of trading activity on the NSE, making the market vulnerable to global sentiment and capital flight during external shocks. By democratizing access, Ziidi aims to significantly deepen domestic retail engagement, building a more resilient and locally grounded market.

Read also: Safaricom’s Green Bond: Fueling M-Pesa’s Sustainability Goals

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