Introduction

AIB-AXYS Africa, a leading Nairobi-based brokerage born from the June 2020 merger of AIB Capital and Apex Africa Capital, has today announced a strategic alliance with Scope Markets Kenya, a Capital Markets Authority (CMA)-licensed online trading provider. The collaboration aims to give Kenyan retail and institutional investors seamless, single-point access to a diverse suite of local and international financial instruments—from Nairobi Securities Exchange (NSE) equities and government bonds to fractional shares, exchange-traded funds (ETFs) and global blue-chip stocks listed on the NYSE, LSE, and HKEX (AIB-AXYS Africa Ltd, scopemarkets.co.ke).

Background on the Partners

AIB-AXYS Africa Ltd. (pronounced “A.I.B-Axees-Africa”) is the product of a 2020 merger between two seasoned Kenyan firms—AIB Capital Limited and Apex Africa Capital Limited—under the wider AXYS Group headquartered in Mauritius and Switzerland. With over 25 years of combined market experience, AIB-AXYS offers stockbroking, fixed-income services, derivatives, and corporate finance to local and foreign investors, backed by its proprietary AIB DigiTrader automated platform.

Scope Markets Kenya (SCFM Limited) launched operations in Nairobi in late 2019 and secured two non-dealing online foreign exchange broker licences (#123 & #143) from the CMA. Beyond its roots as an FX and CFD broker, Scope Markets now serves both retail and institutional clients via MetaTrader 4 & 5, CQG, IRESS and Bloomberg, providing access to over 40,000 global markets (scopemarkets.co.ke, MAfrica Business Communities).

Kenya’s Evolving Investment Landscape

Over the past five years, Kenya has witnessed a rapid democratization of capital markets:

• Unit Trust Growth: Assets under management (AUM) in collective investment schemes rose to KSh 389.2 billion by Q4 2024—a 23 percent quarterly increase and 81 percent year-on-year—driven by low minimum subscriptions (KSh 100–10,000) and investor education initiatives from the CMA and fund managers (Cytonn).
  
• Retail Investor Surge: The number of CIS investors jumped from 200,000 in March 2021 to 1.4 million by December 2024, a 719 percent surge, reflecting growing confidence in professionally managed investment vehicles (Cytonn).
  
• Digital Adoption: Mobile money penetration (primarily via M-Pesa) and fintech innovations have enabled wider participation in online trading, reducing barriers to entry for first-time investors.
  

Yet, Kenyan participation in global equity markets remains underweight—just a sliver of the roughly US $115 trillion world equity market cap, which grew 13.4 percent to $115 trillion in 2023 (SIFMA). High fees, complex offshore account setups, and foreign exchange constraints have traditionally limited access to international stocks.

Key Features of the Partnership

Through this alliance, AIB-AXYS Africa clients will now:

1. Access Local & Global Shares: Trade over 1,000 physical shares and ETFs on the NYSE, LSE, HKEX, and NSE—all from a unified dashboard.
   
2. Invest in Bonds & Fixed Income: Execute trades in Kenyan government and corporate bonds alongside dollar-denominated sovereign and corporate debt products.
   
3. Buy Fractional Stocks: Purchase slices of high-priced global equities—such as Apple, Amazon or Tesla—lowering the entry ticket for budding investors.
   
4. Leverage Advanced Technology: Benefit from Scope Markets’ 24/5 platform reliability, lightning-fast order execution, and multi-asset charting tools.
   

Regulatory Framework & Investor Protection

Both firms operate under stringent CMA oversight, which mandates:

• Licensing & Supervision: SCFM Ltd and AIB-AXYS are licensed stockbrokers and non-dealing FX brokers, subject to periodic inspections.
  
• Anti-Money Laundering (AML): Robust KYC/AML protocols, including source-of-fund verifications, ensure the integrity of all transactions.
  
• Investor Compensation Fund: In the unlikely event of broker failure, eligible clients can recover losses through the CMA’s compensation fund.
  
• Disclosure Requirements: Mandatory periodic disclosures (quarterly financials, risk warnings) promote transparency.
  

These safeguards align with UN Principles for Responsible Investment and global best practices, giving investors confidence that their assets are well protected (MAfrica Business Communities).

Tech-Driven Innovation & Financial Inclusion

The partnership leverages several cutting-edge features to drive inclusion:

• Mobile-First Trading: Both firms’ platforms are optimized for smartphones, reflecting that over 80 percent of Kenyans access the internet via mobile devices.
  
• Local Currency Settlement: Trades can be settled directly in Kenyan shillings, eliminating cumbersome FX conversions and remittance fees.
  
• Education & Research: AIB-AXYS’s in-house research team—CFA-trained analysts offering daily briefs, quarterly macro reports and company-specific notes—will be integrated into Scope Markets’ client portals (AIB-AXYS Africa Ltd).
  
• Fractional Ownership: By slicing expensive shares into smaller, more affordable units, the partnership lowers the entry threshold, enabling millennial and female investors to participate.
  

This user-centric approach echoes global trends: fractional trading platforms in the U.S. saw a 24 percent increase in retail new accounts in 2024 alone, hinting at similar latent demand in Kenya.

Market Potential & Economic Impact

Kenya’s burgeoning middle class, projected to reach 29 million by 2030, represents a vast untapped investor base. According to Cytonn’s “Unlocking Kenya’s Capital Markets” report, foreign net selling positions on the NSE fell by 81.6 percent to $16.9 billion in 2024, signaling renewed interest amid improved macro stability (Cytonn Report).

Modeling by local economists suggests that if even 5 percent of Kenya’s adult population participates in offshore equity trading via this new platform—at an average annual portfolio size of $5,000—it could channel over US $3 billion of retail savings into global markets annually. This would not only diversify household wealth but also deepen Kenya’s FX reserves and enhance diaspora remittance flows.

Challenges & Considerations

Despite the enthusiasm, several challenges must be addressed:

1. Investor Education: Continued efforts are needed to improve financial literacy, especially around complex instruments like derivatives and margin trading.
   
2. Cybersecurity: As digital trading grows, both firms must invest in cutting-edge security protocols—multi-factor authentication, encryption and real-time fraud monitoring—to protect client data.
   
3. Market Volatility: Exposure to global markets brings currency and systemic risks; risk-management tools (stop-loss orders, portfolio hedging) must be emphasized to retail clients.
   

Collaborative workshops with the CMA, universities and fintech hubs are planned to tackle these gaps over the coming months.

Industry Perspectives

• CMA Kenya: “We welcome initiatives that broaden access while upholding investor protection,” said a CMA spokesperson, noting that the partnership aligns with the Authority’s 2024–2029 strategic plan to boost retail participation from the current 1.4 million investors to 3 million by 2029.
  
• Bank of Kenya (Retail Banking): Analysts predict that tying global trading to local bank rails could drive a 15 percent uptick in high-street bank account usage, as clients link deposit accounts directly to trading platforms.
  
• Civil Society: Transparency International Kenya has urged both firms to publish bi-annual impact reports detailing client demographics, trade volumes and compliance audits to foster public trust.
  

Future Outlook

• Q3 2025: Integration of AI-driven robo-advisory services to provide clients with personalized portfolio recommendations based on risk profiles.
  
• Q4 2025: Launch of a joint mobile app co-branded by AIB-AXYS Africa and Scope Markets Kenya, featuring real-time market news, social trading features and peer comparison tools.
  
• 2026: Expansion into other East African markets (Uganda, Tanzania) leveraging CMA-equivalent licences and cross-border fintech agreements.
  

By coupling deep local insight with global market access, AIB-AXYS Africa and Scope Markets Kenya are not just opening new investment avenues—they are catalyzing Kenya’s transformation into a regional financial hub.

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Photo source: Google

By: Montel Kamau

Serrari Financial Analyst

19th May, 2025