Empower Kenyan traders by bridging digital divide

Trader at Migori Marindi market displays tomatoes on November 18, 2024 [Caleb Kingwara, Standard]

In today’s fast-paced financial markets, access to reliable internet is key for traders to be successful.

For many Kenyan traders, however, the high cost of internet data and unreliable connectivity continue to be major stumbling blocks, limiting their ability to fully participate in global trading opportunities.

While Kenya has made significant strides in digital inclusion, many traders in remote or underserved areas remain cut off from the full benefits of online trading due to these barriers.

But, how can internet access be democratised for traders, especially in a country where data costs remain high? And what are industry players and stakeholders doing to help?

For traders, stable internet is more than just a tool, it is a lifeline. With market prices fluctuating by the second, poor connectivity can mean missed opportunities, financial losses, and exclusion from the broader global trading community. Kenya’s growing financial trading scene is largely hindered by this digital divide, which largely stems from two factors - high data costs and limited infrastructure in certain regions. 

According to a 2023 report by the Communications Authority of Kenya, while urban centres such as Nairobi and Mombasa have relatively good internet coverage, many rural areas still suffer from slow speeds and high costs.

The average price of mobile data in Kenya, though competitive compared to other African countries, remains prohibitive for low-income traders or those trading on thin margins. 

The impact of this digital divide is most strongly felt by small-scale traders and retail investors who rely on real-time market data and analysis to make informed decisions. These traders are often the most vulnerable to market shifts, making reliable access a critical component of their success. 

Over the years, several players have emerged with solutions aimed at bridging the gap. Telecommunications companies have rolled out mobile-friendly data packages tailored for businesses, while tech companies have sought to introduce trading platforms that are optimised for low-data usage. Safaricom, for instance, Kenya’s largest telco provider, has been at the forefront of this movement, offering various bundles to cater to traders and other online professionals who require steady access. 

Financial institutions and brokerages have also begun to address the digital divide. Some firms have launched mobile trading platforms that compress data, ensuring traders can access market information even with limited internet connectivity. Others have partnered with data service providers to offer affordable or subsidised data plans for their clients.

The core aim of these initiatives is to level the playing field, ensuring that anyone, regardless of location or financial status, can tap into the vast opportunities offered by global markets. 

Access to the internet has increasingly become seen as a basic necessity in facilitating economic development. For traders, who need to make quick, real-time decisions, lack of internet access can be a direct barrier to financial growth and independence. By bridging this gap, stakeholders have the opportunity to democratize access to wealth-building opportunities, enabling more people to participate in financial markets that were once the domain of the privileged few. 

One key way to achieve this is through partnerships between financial services firms and telecom providers. Offering free or low-cost data bundles for trading platforms can dramatically lower the barriers to entry for aspiring traders. These bundles can be designed to cover essential functions like market data access, trade execution, and news alerts - services that traders rely on to stay competitive. 

Among the players actively working to reduce the barriers to internet access for traders is Windsor Brokers. While Windsor’s role in democratising financial markets is significant, it is part of a broader ecosystem striving for greater inclusivity. 

Through partnerships with Safaricom, Windsor Brokers has taken a unique approach by offering up to 3GB of free data per month for traders using the MetaTrader 4 (MT4) platform. This initiative ensures that traders are not sidelined by high data costs, enabling it to engage in global financial markets seamlessly. Windsor’s effort, though notable, highlights an industry trend toward integrating financial services with technological solutions that prioritise access and inclusivity. 

The road to digital inclusion is long, but the steps taken today will determine how inclusive Kenya’s financial future will be. By investing in infrastructure, forging strategic partnerships, and focusing on education, stakeholders can ensure that internet access is not a luxury but a right for all traders. 

-The writer is CEO, Windsor Brokers Kenya