Safaricom’s new M-Pesa trading app, Ziidi Trader, processed 55% of all share orders at the Nairobi Securities Exchange (NSE) on Monday.
Data shows that a total of 7,962 out of 14,300 buy and sell orders were executed via M-Pesa accounted for just 2% of traded value due to the Ksh.500,000 mobile transaction cap.
This comes at a time when the NSE’s two-year rally has failed to significantly expand the investor base.
According Capital Markets Authority (CMA), the number of active investors grew by only 0.2%, just 2,621 additional traders to 1.3 million over the period.
Safaricom introduced Ziidi Trader, a feature within the M-Pesa app for users to buy and sell shares listed on the NSE.
Also Read: Local Investors to Trade NSE Shares Via M-Pesa
With Ziidi Trader, users simply opt in, choose the companies they want to invest in, and complete transactions directly through M-Pesa.
It is an innovative and first-of-a-kind move by Safaricom as the telco aims to include all Kenyans in the stock market and wealth management.
Ziidi Trader is designed to address the long-standing challenges that have limited retail investor activity at the NSE, including high minimum trading requirements, lengthy onboarding processes and unfamiliar market procedures.
