If you are interested in trading trends in Kenya, this article is just right for you. In 2021, Kenya became Africa’s third largest retail forex trading market and showed an 80% growth in retail trading just the previous year. The growing number of traders among the youth – both in school and outside – is among the reasons for this continued growth.
Thanks to tech advancements, there is now a conducive environment that allows convenient participation in online trading from any place at any time. The reasons are just so many. In this article, we will take a critical look at the various aspects that have contributed to this trend.
The popularity of mobile technology
This East African country has been rapidly opening up to mobile technology over the last two decades. In January 2024 alone, there were about 63.9 million mobile connections, corresponding to 118.7% of Kenya’s population. This means some individuals use more than one device. As if that’s not enough, a majority of those who own mobile phones are between the ages of 25 and 54. The UN Women Data Hub actually approximates their portion to be 80%.
Due to this widespread adoption of mobile technology, accessing trading apps has become seamless – with just a simple touch of a button, and you are good to go. Whether you are on a bus travelling home or in a queue waiting for services, you can access your favourite trading platform through your smartphone and get started.
Increased internet connectivity
Alongside mobile technology, most parts of Kenya have good internet connectivity, ensuring traders can connect to various platforms seamlessly. What sense does it make to have a mobile phone, and yet you can’t access the internet? Just recently, early this year (2024), DataReportal reported a 40.8% internet penetration rate in the country, with 22.71 million individuals using the internet. And surprisingly, this value had jumped by about 2% (445,000) from the previous at almost the same time.
In that same breadth, the country has been welcoming the 5G network, which is set to provide high-frequency mobile trading to users. As of November 2023, Safaricom had already distributed its 5G connectivity to different communities across 35 counties, increasing the number of users to more than 500,000.
Towards the mid of this year, Airtel Kenya confirmed plans to introduce new unlimited Home Broadband 5G Data Plans that would provide users with uninterrupted data experiences. Such developments open up the trading industry more, as both users and service providers have just the right atmosphere to facilitate their engagements.
Financial inclusion
Kenya has been making progress regarding financial inclusion. By November 2023, about 84% of the country’s population had an account with an official financial institution. This statistic is a testament to the country’s ever-changing financial landscape. Eva Ngigi Sarwari, an executive at Visa Inc., agreed to these changes, stating that Kenyan millennials and Gen Z were now getting early exposure to financial information, increasing their curiosity about foreign financial products.
In June 2023, the Central Bank of Kenya, in collaboration with the Kenya Bankers Association, developed a financial literacy program whose target was mainly the youth. Such initiatives can stir financial curiosity among young people and encourage them to begin exploring different financial services like crypto, stocks, commodities, and more.
Plus, there are numerous online platforms where traders can receive relevant information at either free or premium subscriptions. This, combined with the growing internet connectivity, makes it easy for more populations to improve their financial literacy.
In Kenya right now, there are platforms that allow you to trade on forex with as low as Ksh. 500—this is about $3 – $4. Unlike traditional markets, where large barriers of entry existed, traders in the country can now enter the market with minimal capital. This appeals to the youthful generation, among whom a considerable portion remains unemployed.
The role of regulation
Any serious trader will want to be sure that they are safe from potential fraudulent activities and that they are also participating on credible platforms. When regulations to ensure such are in place, they can encourage the adoption of forex trading.
When it established a regulatory regime for online forex trading in 2017, Kenya became the first African country to do so. This was good news for foreign investors and Kenyans, including the youth. The framework aligns with international standards, making it appealing to international brokers and investors.
It’s no wonder why top industry stakeholders like Ken Van Damme anticipate the Kenyan forex trading market to continue growing. Ken believes that as forex education and trading tools become more available, we will witness a significant rise in the number of individuals participating in this industry.
With more technological advancements, such as mobile technology and internet connectivity, we will likely see more young people turning to forex. Plus, as brokers become more competitive and continue to require lower deposit amounts, the numbers might continue increasing.
