CMA Approves Safaricom, Airtel Money Entry Into Capital Markets

The Capital Markets Authority (CMA) has granted regulatory approval to Safaricom Plc and Airtel Money Kenya Limited to operate as Intermediary Service Platform Providers (ISPPs), marking a major step in expanding digital access to Kenya’s capital markets.

Under the new licences, the two mobile money operators will be allowed to offer regulated digital platforms that link users to approved capital markets products, including shares, bonds and collective investment schemes.

The move is expected to increase competition, widen investor choice and make it easier for more Kenyans to participate in the capital markets using familiar mobile platforms.

The CMA said the entry of Safaricom and Airtel Money into the capital markets space could significantly lower barriers to investing by allowing users to open accounts, place orders, and monitor investments online in a secure and regulated environment.

The regulator noted that this could help bring more retail investors into the formal financial system.

In a separate approval, CC Kenya Securities Limited, trading as Capital.com, has been licensed to operate as a Dealing Online Foreign Exchange Broker. This authorisation allows the firm to act as a principal and market maker in online forex trading.

As a dealing broker, Capital.com is permitted to open and manage client accounts, provide trading platforms and market information, monitor client positions and issue end-of-day trading reports.

Its operations will be governed by the Capital Markets (Online Foreign Exchange Trading) Regulations, 2017.

The CMA said the latest approvals reflect growing interest in Kenya’s regulated online forex and digital investment sector. To date, the authority has licensed 13 non-dealing online forex brokers, two dealing online forex brokers and three money managers.

According to the regulator, the new licences form part of its broader efforts to modernise and digitise the financial sector, improve transparency and investor protection, and expand access to regulated investment and trading services across the country.