Safaricom has officially launched Ziidi Trader, marking a shift in how everyday M-PESA users can access the Nairobi Securities Exchange (NSE). Launched at the NSE on February 10, the mini-app allows users to buy and sell listed equities directly inside M-PESA, removing traditional barriers such as separate brokerage onboarding and individual CDS account setup.
While the launch has been framed as a breakthrough for retail participation, Ziidi Trader is better understood as the second phase of a broader investment strategy. That strategy began earlier with the rollout of the Ziidi Money Market Fund (MMF), a product that quietly introduced millions of users to investing before equities were placed within reach.
Ziidi MMF Laid the Groundwork for Retail Investing
Before stock trading entered the picture, Ziidi MMF acted as Safaricom’s proof of concept. The fund lowered entry barriers through small minimum investments, daily yield visibility, instant liquidity, and seamless integration with M-PESA. For many users, it was their first experience with a regulated investment product outside traditional banking.
That exposure mattered. Ziidi MMF helped normalise the idea that idle wallet balances could earn returns, encouraging frequent engagement and gradual capital accumulation. In doing so, Safaricom addressed two structural challenges that have long constrained retail participation in Kenya’s capital markets: trust and behavioural inertia.
By the time Ziidi Trader launched, a large segment of users had already crossed the psychological hurdle of investing, albeit at the lowest end of the risk spectrum.
How Ziidi Trader Works and What Changes
Ziidi Trader allows M-PESA users to buy and sell NSE-listed equities through a mobile interface. Kestrel Capital acts as the executing broker in the initial phase, with additional brokers expected to join over time.
The platform operates on a pooled omnibus structure, meaning users do not open individual CDS accounts. Instead, they rely on existing M-PESA KYC credentials to access the market. While standard NSE settlement typically runs on a T+3 cycle, Ziidi credits user accounts once trades are matched, with Kestrel responsible for completing settlement in the background.
Brokerage fees are set at approximately 1.5% per trade, below prevailing retail rates between 1.8% and 2.1%. The pricing model targets higher transaction volumes rather than wider margins. Wallet funding and withdrawal charges are also removed when moving money in or out of the trading environment.
The mini-app integrates portfolio analytics, corporate actions, top movers, and counter-level performance data. Dividend flows and sale proceeds are returned to the M-PESA wallet, with the option to redirect funds into affiliated products such as Ziidi MMF, reinforcing Safaricom’s internal investment ecosystem.
Market Impact and the Bigger Picture
Safaricom notes that Ziidi Trader will deepen domestic retail participation in a market where foreign investors account for roughly 65% of trading activity. In the near term, activity may concentrate in highly liquid and familiar counters, particularly large banks and consumer stocks.
Politically, the launch has received strong backing. President William Ruto has urged Kenyans to participate in upcoming offers such as the Kenya Pipeline IPO directly from their phones, arguing that digital access allows millions to own national assets and contribute to economic growth. Speaking at the Ziidi Trader launch at the NSE, he emphasised that digital trading platforms can expand participation far beyond the current estimated 200,000 investors.
Treasury Cabinet Secretary John Mbadi reinforced this narrative, noting that Kenya’s market capitalisation has grown from about KSh 1.2 trillion in 2022 to roughly KSh 3 trillion today, positioning broader retail access as a key driver of long-term market growth.
Taken together, Ziidi MMF and Ziidi Trader reveal a calculated progression rather than a one-off product launch. Safaricom is not attempting to replace traditional brokers or court-active traders. Instead, it is owning the entry point to investing, guiding users from low-risk yield products into equity markets within a single, familiar ecosystem.
Ziidi Trader may be the headline today, but its success will ultimately be measured by how effectively that foundation translates into sustained retail participation at the NSE.
