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In a significant move aimed at deepening retail participation in Kenya’s capital markets, the Nairobi Securities Exchange (NSE) has eliminated the long-standing rule requiring a minimum trade of 100 shares per transaction. Starting August 1, 2025, investors will now be able to buy or sell shares in any quantity—from as little as a single share—on the main trading board.
This change, approved by the Capital Markets Authority (CMA), marks the end of the dual-board system that has existed for more than two decades. Since 2006, trades involving fewer than 100 shares were handled on the “odd lots” board, where transactions were often executed at discounted prices due to lower liquidity and demand.
The policy shift is a key milestone in the NSE’s 2025–2029 Strategic Plan, which prioritizes revitalizing the local bourse through enhanced accessibility and increased retail investor activity.
“This change supports the NSE 2025–2029 strategic plan, which focuses on revitalising the market through greater retail investor participation,” the Kenya Association of Stockbrokers and Investment Banks (KASIB) noted in a recent post on social media platform X.
Lowering the Barrier to Entry
Previously, the 100-share threshold made it financially difficult for many individual investors to access high-value stocks. For instance, blue-chip counters with higher nominal prices were often out of reach for everyday Kenyans, effectively locking them out of both dividend income and long-term capital gains opportunities.
By doing away with the bulk purchase requirement, the NSE has not only leveled the playing field but also opened new pathways for financial inclusion. The move is expected to enhance market liquidity, improve price discovery, and stimulate broader participation across investor segments.
Next Steps for Market Participants
All market intermediaries—including stockbrokers, investment banks, and custodians—are being urged to update their trading systems and communicate the changes to their clients ahead of the August rollout.
The revamped trading structure aligns the NSE more closely with global best practices and is expected to spur greater engagement from younger and first-time investors who previously found the market inaccessible.
