Safaricom’s ambition to turn its mobile money platform, M-PESA, into an all-encompassing financial hub just passed a major stress test. During the landmark initial public offering (IPO) of the Kenya Pipeline Company (KPC) — the country’s first major listing in nearly two decades — Safaricom’s newly piloted stock trading tool captured almost half of the retail market.
Out of 73,043 retail applications for the KPC IPO, 36,043 were processed through Ziidi Trader, a module embedded within the M-PESA app. Accounting for 49.3% of total retail participation, the figures highlight a rapid shift in how Kenyan retail investors access public markets, challenging the traditional brokerage model.
A landmark privatisation
The Kenyan government’s sale of a 65% stake in KPC raised 106.3 billion Kenyan shillings ($823.1m). Priced at 9 shillings per share, the stock traded marginally higher at 9.4 shillings in early Tuesday trading on the Nairobi Securities Exchange (NSE), according to LSEG data.
Despite initial market concerns regarding lower valuations from some banks, an extended offer period, and reports of investor apathy, the IPO ultimately closed oversubscribed.
The listing is a cornerstone of President William Ruto’s economic strategy. Facing limited fiscal space for tax- or debt-driven development, the administration has pivoted toward securitising revenue streams and privatising state assets. The government has already earmarked 15bn to 20bn shillings of the IPO proceeds for the expansion of Nairobi’s main airport.
Fixing a dormant retail market
For the NSE, the influx of M-PESA-driven retail investors addresses a long-standing structural problem: low participation. Currently, only about 61,000 of the 1.4 million registered accounts on the NSE are actively trading — roughly 4.3%.
Piloted in November 2025, Ziidi Trader attempts to solve this by removing the friction traditionally associated with equity investing, such as lengthy account opening processes, broker linking, and opaque fee structures. The service integrates NSE trading directly into the M-PESA app, offering users real-time alerts, personalised watchlists, and portfolio tracking.
The fintech convergence
Ziidi Trader’s performance in the KPC IPO is not an isolated event but part of Safaricom’s broader push into wealth management. It follows the launch of the Ziidi Money Market Fund in January 2025, which quickly attracted over 450,000 users.
By embedding stock trading into a platform already used daily by millions for payments and savings, Safaricom is capitalising on the convergence of telecom, fintech, and capital markets.
Key market implications:
- Disrupting Traditional Brokers: By offering direct market access through a ubiquitous app, Safaricom challenges the traditional gatekeepers of the NSE, forcing legacy brokers to rethink their retail strategies.
- Unlocking Liquidity: Bringing a younger, digital-first demographic to the NSE could inject a new wave of sustained liquidity into the exchange.
- A Blueprint for Africa: If scalable, the M-PESA model of leveraging high-penetration mobile money networks to democratise equity investing could be replicated across other emerging markets.
The long-term success of Ziidi Trader will depend on regulatory alignment, sustained investor education, and Safaricom’s ability to maintain a seamless user experience during high-volume trading days. However, its debut performance in the KPC IPO suggests the balance of power in Kenya’s retail investment landscape is already shifting.