NSE opens its doors to small traders

By Jackson OKOTH

Retail Investors, previously locked out of the Nairobi bourse through high-wall entry barriers, can now heave a sigh of relief. This follows amendments to the Nairobi Securities Exchange(NSE) Equity Trading Rules, allowing the buying and selling of shares in single units, with effect from August 8^th 2025.

In a statement, the NSE said that by enabling single-unit trading, the bourse will provide greater flexibility for investors, reduce entry barriers, and encourage wider participation, particularly from retail investors who have previously found it difficult to invest due to high minimum trade sizes.

Consequently, the NSE has pulled down the Odd Lot Board that was previously used for trades below 100 shares. All market orders will now be placed and executed on the Main Order Book.

Going forward, the official daily closing price of a listed equity shall be determined only if the total cumulative traded volume in a session is at least 100 shares or units. If the total cumulative traded volume is below 100, the closing price shall remain the previous average reported by the NSE.

Mr. Frank Mwiti, Chief Executive Officer of the NSE said, “We are pleased to take this significant step towards enhancing retail investor participation in our market. This initiative is part of our broader strategic efforts to increase financial inclusion and market accessibility for all investors. It aligns with our vision of increasing the number of active investors to 9 million by the year 2029.”

The NSE remains committed to fostering a more inclusive and investor-friendly market. This development reinforces our efforts to deepen the market and support the growth of retail investor participation, while also aligning with global best practices in equity trading.

These developments at Kenya’s Capital Markets come as the bourse drags itself out of a prolonged listing drought.

This month saw the entry of Shri Krishana Overseas (SKL) Limited, a family-owned packaging firm, which listed 50.5 million shares at KSh 5.90 each. Of these, 8.7 million are immediately available for trading. Another notable player is Linzi FinCo 003, an Infrastructure Asset-Backed Security (IABS), that aims to fund the construction of Nairobi’s 60,000-seat Talanta Stadium for AFCON 2027.

According to stockbrokers, the initial Public Offer(IPO) of the state-owned Kenya Pipeline Company (KPC), is expected to excite the bourse as the Government unloads its loss-making enterprises.

Latest figures from Capital Markets Authority(CMA), as at the end of June 2025, shows that equity trading at the NSE is dominated by local firms at 52.3%, followed by retailers (30.6%), foreign firms (15.2%) while the rest in shared by brokers, East African firms and individuals as well as individual foreigners.

With the widespread adoption of mobile technology across Africa, Kenya has become a global leader in mobile banking and digital finance. This technological infrastructure provides a solid foundation for the NSE to attract retail investors through mobile-based trading platforms, expanding access to the capital markets for millions of individuals who previously lacked the tools to participate.

With access to mobile devices and the internet, the Kenyan youth are drawn to mobile-based financial platforms, a reality that the NSE must be alive to.

This presents an ideal window for the NSE to digitally link with retailers through user-friendly online platforms that facilitate stock trading.

According to the NSE strategic plan (2025-29) the bourse plans on expanding the retail investor base by bringing in 9 million active retail investors into the market before 2029. This bold move is expected to democratize access to capital markets, giving millions of Kenyans the opportunity to build wealth through investments.

The NSE says it will accomplish this feat by enhancing financial literacy, simplifying the investment process, and leveraging digital technologies to make markets more accessible to everyday Kenyans.

Additionally, the exchange will recruit at least 500 NSE agents to ensure that it reaches underserved Kenyans countrywide.

The NSE is keen to expand retail participation through accessible platforms, partnerships and agency networks and investor education.