Kenya has taken another step toward deepening financial inclusion and widening retail participation in its capital markets, after the Capital Markets Authority (CMA) licensed Safaricom Plc and Airtel Money Kenya Limited to operate as Intermediary Service Platform Providers (ISPPs).
The licences, granted on December 22, allow the two telecommunications firms to link their vast mobile money user bases to regulated capital markets products, enabling Kenyans to access investment opportunities directly through familiar mobile platforms.
Under the ISPP framework, licensed platforms act as digital bridges between investors and capital markets institutions, facilitating access to products such as securities and other approved investment instruments. The CMA said the move is expected to boost competition, expand investor choice, and strengthen digital access to regulated investment products.
The decision reflects the growing role of mobile technology in reshaping Kenya’s financial system. Mobile money platforms, once focused mainly on payments and transfers, are increasingly becoming full-service financial ecosystems offering savings, credit, insurance, and now investment access.
Safaricom enters the space as the clear market leader. According to the Communications Authority of Kenya’s First Quarter Sector Statistics Report for FY 2025/2026, the company controls 65.3 percent of mobile subscriptions and a dominant 89.7 percent share of mobile money users through its M-Pesa platform. Airtel, meanwhile, accounts for 30.7 percent of mobile subscriptions and 10.3 percent of mobile money users, giving it a sizable footprint, particularly among price-sensitive consumers.
Kenya’s mobile money sector has reached near-universal adoption, with 48.6 million subscriptions and a penetration rate of 92.8 percent, making it one of the most advanced digital finance markets in Africa. Regulators increasingly see this infrastructure as a gateway for extending financial services to underserved and unbanked populations.
By licensing Safaricom and Airtel Money as ISPPs, the CMA is effectively tapping into their mobile apps, USSD channels, and nationwide agent networks to lower entry barriers into capital markets, which have traditionally been perceived as complex and inaccessible for retail investors.
The move also aligns with a broader strategic shift by telecom operators, who are diversifying beyond voice and data revenues into higher-value financial services. Both Safaricom and Airtel have steadily expanded their offerings to include digital lending, savings products, insurance distribution, and merchant services, positioning themselves as central players in Kenya’s evolving fintech landscape.
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For policymakers, the ISPP framework represents an attempt to modernize capital markets by meeting investors where they already are on their mobile phones while maintaining regulatory oversight and consumer protection.
As Kenya continues to push digital financial innovation, the entry of major telcos into regulated investment distribution could significantly reshape how households save, invest, and build wealth, bringing capital markets closer to everyday financial life.
