Kenya: CMA Approves Two Ispp Platforms in Push to Expand Digital Investing

NAIROBI — The Capital Markets Authority has licensed two fintech firms to operate as Intermediary Service Platform Providers (ISPPs), in a move aimed at widening digital access to regulated investment products and accelerating participation in Kenya's capital markets.

The regulator said the approvals, issued under the Capital Markets (Collective Investment Schemes) Regulations, 2023, are part of broader efforts to deepen the market through technology-driven innovation and expand access to investment opportunities among retail investors.

Under the approvals, Moneto Ventures Limited received an ISPP licence for its Chumz mobile application, a digital savings and investments platform that connects retail investors to collective investment schemes.

The platform had previously participated in the CMA Regulatory Sandbox and exited in August 2022 after testing its model under a controlled regulatory environment before entering the mainstream market.

CMA also licensed Pesa Bridge Limited, which operates a mobile-first digital infrastructure designed to connect retail investors with licensed fund managers and custodians.

The firm says its platform seeks to digitize the access and distribution of collective investment schemes in Kenya and across the wider East African region.

The latest approvals come as regulators increasingly turn to fintech-driven solutions to boost financial inclusion and attract younger and first-time investors into formal investment products, amid growing smartphone penetration and mobile money adoption.

"The approvals form part of CMA's ongoing efforts to deepen Kenya's capital markets, enhance innovation and expand access to investment services across diverse investor segments," the Authority said in a statement.

The regulator added that the licenses reflect its commitment to fostering "a well-regulated, inclusive and dynamic capital markets ecosystem."

Kenya has in recent years seen rising interest in digital investment platforms, with fintech firms leveraging mobile technology to simplify access to money market funds and other collective investment schemes that were previously dominated by traditional financial institutions.

Read the original article on Capital FM.