The Capital Markets Authority (CMA) has announced the admission of Frictionless Enterprises Limited to its regulatory sandbox. The fintech firm intends to test Power IO App, a mobile application that enables workers to easily invest part of their wages into a money market fund.
According to the CMA, Frictionless Enterprises will partner with Sanlam East Africa Investment Limited as the fund manager during the sandbox testing phase. The innovation will be tested in compliance with the CMA’s Regulatory Sandbox Policy Guidance Notes.
CMA Chief Executive William Nyagaka said, “Admitting fintechs like Frictionless Enterprises to our sandbox allows us to support innovation while ensuring investor protection and market integrity.”
He added, “Products like the Power IO App can promote financial inclusion by making investing more accessible to workers.”
Daniel Muli, CEO of Frictionless Enterprises, explained how the app will work: “Users can schedule investments from their earnings so that a percentage is automatically deposited each pay period into an underlying money market fund.”
He said this automatic scheduling “helps maximize contributions and prevents people from spending wages before investing.”
James Mwaura, Managing Director at Sanlam, noted the app’s potential to expand capital markets access: “By connecting to employers and gig platforms, the Power IO App allows even more Kenyans to participate in capital markets investing.”
According to the CMA, Frictionless Enterprises will test the innovation under its supervision and ensure compliance with relevant regulations. The sandbox allows fintechs to trial innovations before full market rollout.
