Equiti Group launched online forex trading operations in Kenya two years ago through local subsidiary EGM securities. The company has grown six-fold in terms of staff numbers, customers, and product offerings in the Kenyan market.
During the company’s 2nd anniversary, the Kenyan Wallstreet team met with EGM Securities CEO Samwel Kiraka to expound on their journey and transition into the corporate clients.
EGM Securities was the first non-dealing online forex broker licensed and regulated by the Capital markets Authority. EGM is part of the Equiti Group of companies with regulated subsidiaries in the UK, the US, the UAE, Armenia, Jordan, and New Zealand.
During this period of lock-down, Mr Kiraka says that there has been a growing interest in online trading. The pandemic has seen more people indoors and promoted remote working thus increasing the time spent on laptops and smartphones.
In particular, he says that tech stocks such as Zoom, Apple continue to impress due to surge in online traffic and meetings. In addition, pharmaceutical companies working towards coronavirus vaccines such as Moderna, biotech firms, and Gilead Sciences have seen a spike in demand. Kiraka says that uncertainty in the currency markets has seen customers moving to safe-haven assets such as gold.
Mr. Kiraka attributes the growing demand for online services in Kenya to government support in making Kenya a technology frontier. He says that the ICT ministry has been providing technological infrastructure and championing the adoption of technology in business operations. The Youth make up 65 per cent of the Kenyan population making it suitable for EGM’s operations.
FXPesa has been EGM’s flagship product for the retail mass enabling clients to trade commodities and currencies online or via a mobile app. This has been well received since launching in May 2019 and informs the change in strategy to corporate clients.
In this case, EGM is pursuing strategic partnerships that will customize and localize products to suit the needs of the corporate partners. Kiraka says that they have a number of corporate clients such as the recent partnership with Genghis Capital and are looking to bring more on board.
The EGM team is ready to offer a quick go to market solutions for corporate clients such as commercial banks, stockbrokers, and pension schemes.
EGM CEO Samwel Kiraka
EGM will rely on the expertise and wide network of the Equiti Group by taking the lesson learned in other locations and localizing that to fit the Kenyan corporate clients. He adds that for the two years they have been operating locally they have understood the Kenyan market which means improved and quality service delivery to corporate clients.
Mr. Kiraka adds that EGM is looking to work with like-minded corporates looking to offer multi-asset products to their clients. The two-year journey in Kenya has seen EGM transform into 100 per cent technology company thus will leverage this to net new corporate clients.
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