The Nairobi Securities Exchange (NSE) has postponed the launch of its single-unit share trading policy to August 8, following regulatory approval by the Capital Markets Authority.
The reform, aimed at boosting retail investor participation in Kenya’s capital market, was reportedly scheduled to take effect on August 1.
The update was announced in a statement issued by the NSE on Tuesday.
“The Nairobi Securities Exchange Plc (NSE) wishes to inform all investors and the public that, effective August 8, 2025, shares will be traded on the NSE in multiples of one (1) unit,” the bourse said.
“This significant change follows the approval of amendments to the NSE Equity Trading Rules, allowing the buying and selling of shares in single units,” the statement added.
The move eliminates the long-standing requirement for investors to buy shares in lots of 100, a change the NSE says will lower entry barriers and promote financial inclusion.
Under the new rules, all market orders will be placed on the Main Order Book as The Odd Lot Board, previously used for trades below 100 shares, has been scrapped.
Going forward, the NSE added, the official closing price of a listed stock will only be determined if the total traded volume reaches at least 100 shares in a session. If not, the closing price will remain as previously reported.
What it means for Kenya
The rule change supports the NSE’s 2025–2029 Strategic Plan, which aims to expand market participation, deepen liquidity, and list 40 additional companies on the exchange.
“This initiative is part of our broader strategic efforts to increase financial inclusion and market accessibility for all investors,” said Frank Mwiti, NSE’s CEO. “It aligns with our vision of increasing the number of active investors to 9 million by the year 2029.”
Kenya currently has around 1.6 million retail investors, but fewer than 40,000 are active.
Achieving the nine million target would mean nearly a third of the country’s working population taking part in the capital markets.
The introduction of single-unit trading marks a step forward in reaching this ambitious goal.
New trading policy follows recent market momentum
This latest development comes as Kenya’s equity market continues a strong run of performance.
In 2024, the NSE was the best-performing African bourse in dollar terms, according to the Morgan Stanley Capital International Frontier Markets Index.
That momentum has extended into 2025, with all major indices posting double-digit gains in the first half of the year.
Data from the bourse shows that the NSE All Share Index, which tracks the performance of all listed firms, rose by 22.41% in the six months leading to June 30.
During the same period, the NSE 20 Share Index climbed 18.54%, while the NSE 10 and NSE 25 Share Indices increased by 14.28% and 13.89%, respectively.
With greater retail participation and easier access to trading, the NSE hopes to sustain the rally and attract a new generation of investors, while creating more diverse funding avenues for businesses.
