In a groundbreaking move, the Capital Markets Authority of Kenya (CMA) has granted approval to First Future Holdings Ltd to initiate trials of a revolutionary technology that enables Kenyans to buy and sell shares listed on the Nairobi Securities Exchange (NSE) using SMS. This regulatory green light is poised to democratize stock market investing, fostering accessibility for a wider demographic.
The innovative technology leverages Unstructured Supplementary Service Data (USSD), a menu-driven system widely utilized in Kenya for accessing mobile banking and various services. Through this system, investors can seamlessly execute orders to buy or sell shares, monitor their portfolios, and stay informed with real-time market updates—all through their mobile phones.
Currently undergoing evaluation in the regulatory sandbox of the CMA, a designated space for testing new financial products and services, the technology is expected to receive final approval in the upcoming months.
The introduction of SMS-based share trading is anticipated to usher in a host of benefits for Kenya’s capital markets. By eliminating geographical and technological barriers, it is set to simplify investing, particularly for individuals in rural areas and those less familiar with computers or smartphones. This inclusive approach is expected to broaden participation in the stock market and, concurrently, boost trading volume on the NSE.
The CMA remains steadfast in its commitment to the expansion and development of Kenya’s capital markets, actively encouraging the use of financial technology (FinTech) to achieve this objective. The regulatory sandbox, a key component of this initiative, not only facilitates innovation but also serves as a catalyst for financial inclusion, aligning with the broader vision of propelling Kenya’s financial landscape into the future.
[Photo/capitalfm business]
By: Delino Gayweh
Serrari Financial Analyst
23rd, November 2023
Article and News Disclaimer
The information provided on www.serrarigroup.com is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
www.serrarigroup.com is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
In no event will www.serrarigroup.com be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.
The articles, news, and information presented on www.serrarigroup.com reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.
The content on www.serrarigroup.com may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, www.serrarigroup.com takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.
By using www.serrarigroup.com, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website.
www.serrarigroup.com, reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.
Serrari Group 2023