The Capital Markets Authority (CMA) is exploring the development of an Unstructured Supplementary Service Data (USSD) code to enhance market access for local investors lacking internet connectivity. This initiative aims to address a significant barrier for domestic investors by providing mobile-based access to capital market brokers, products, and information.
The proposed USSD code would enable users, including those with feature phones, to monitor investments and access market data. The CMA’s approach is inspired by a similar successful initiative by the Nigeria Exchange Group (NGX), which introduced a USSD code in November last year, facilitating broader access to investment opportunities and promoting retail investor participation.
The CMA’s Market Soundness Report highlights that the USSD code could democratize access to investment information and increase market inclusivity. This move aligns with efforts to address the challenge of insufficient information, which a recent survey identified as a key obstacle for retail investors in Kenya.
Eric Musau, Executive Director of Research at Standard Investment Bank, supports the initiative, noting that feature phones still represent 48.6 percent of the market. By providing access via USSD, the CMA aims to engage a significant portion of the population currently excluded from digital platforms.
Current statistics show that approximately 31.8 million feature phones are in use in Kenya, underscoring the need for accessible market information. The introduction of the USSD code could bridge the information gap and enhance investor participation, particularly among those at the grassroots level.
This initiative follows recent efforts to expand investment opportunities, including the Central Bank of Kenya’s plan to offer government securities with lower denominations. The CMA’s USSD code is expected to further support this goal by making capital markets more inclusive and accessible.
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