Grace Ashiru
Kenya’s Capital Markets Authority (CMA) recently licensed Safaricom and Airtel Money as Intermediary Service Platform Providers (ISPPs), allowing the two companies to offer regulated capital markets products through their mobile platforms.
Safaricom dominates both the mobile and mobile money markets in Kenya, with market shares of 65.3% for mobile subscriptions and 89.7% for mobile money services. In comparison, Airtel holds 30.7% of mobile subscriptions and 10.3% of mobile money users.
The ISPP framework supports the growing involvement of telecommunications companies in financial services, particularly targeting the unbanked population. With mobile apps, USSD platforms, and agent networks, telcos can now offer a range of financial products such as investments, savings, loans, and insurance.
On December 22, the CMA granted Safaricom Plc and Airtel Money Kenya Limited the ISPP licenses, enabling the two companies to provide capital markets products, such as securities, directly through their mobile ecosystems. This move is expected to increase competition, expand investor choice, and enhance digital access to regulated financial products.
The ISPP framework establishes telcos as crucial links between mobile money services and the broader financial markets, potentially changing how millions of Kenyans engage with investments.
This licensing development comes amid a competitive mobile money landscape in Kenya. According to the Communications Authority of Kenya’s First Quarter Sector Statistics Report for the 2025/2026 Financial Year, Safaricom has a dominant 65.3% share of mobile subscriptions, followed by Airtel at 30.7%. In mobile money, M-Pesa leads with an 89.7% market share, while Airtel Money holds 10.3%. The mobile money sector, with 48.6 million subscriptions and a penetration rate of 92.8%, continues to be a critical tool in advancing financial inclusion, especially for the unbanked.
The ISPP licensing signals a broader trend where telcos are expanding their offerings beyond traditional voice, data, and mobile money services. Both Safaricom and Airtel have established comprehensive digital ecosystems that include insurance, lending, savings, and merchant services. With their extensive infrastructure—comprising mobile apps, USSD platforms, and agent networks—they are well-positioned to democratize access to capital markets.
