The Nairobi Securities Exchange (NSE) has increased initial margin requirements across multiple single stock and index futures, effective 19 September 2025, in a move aimed at strengthening risk management within its derivatives segment (NEXT).
- •According to the market notice, the new rates apply to all open and new contracts from December 2025 through September 2026.
- •Traders with open positions will either receive margin refunds or be required to top up their accounts to align with the new levels.
- •NEXT aims to deepen Kenya’s capital markets by enabling hedging, speculation, and portfolio diversification.
Full New Initial Margins (KES)
| Contract | Dec 2025 | Mar 2026 | Jun 2026 | Sept 2026 |
|---|---|---|---|---|
| Safaricom (SCOM) | 3,700 | 4,000 | 4,300 | 4,600 |
| KCB Group (KCBG) | 6,700 | 7,100 | 7,500 | 8,000 |
| Equity Group (EQTY) | 6,600 | 7,000 | 7,400 | 7,900 |
| Absa Bank (ABSA) | 3,300 | 3,400 | 3,600 | 3,800 |
| East African Breweries (EABL) | 5,000 | 5,200 | 5,500 | 5,700 |
| BAT Kenya (BATK) | 6,400 | 6,500 | 6,700 | 6,800 |
| NSE 25 Index (N25I) | 23,900 | 26,600 | 29,200 | 31,800 |
| Mini NSE 25 Index (25MN) | 2,300 | 2,600 | 2,900 | 3,100 |
| NCBA Group (NCBA) | 7,700 | 8,400 | 9,100 | 9,800 |
| Co-operative Bank (COOP) | 2,800 | 2,900 | 3,000 | 3,200 |
| Standard Chartered Kenya (SCBK) | 4,900 | 5,200 | 5,400 | 5,600 |
| I&M Group (IMHP) | 6,000 | 6,100 | 6,300 | 6,500 |
| Mini NSE 10 Index (10MN) | 1,000 | 1,100 | 1,200 | 1,300 |
| Kenya Power (KPLC) | 6,300 | 6,500 | 6,700 | 6,800 |
| KenGen (KEGN) | 2,400 | 2,500 | 2,500 | 2,600 |
| Kenya Re (KNRE) | 1,200 | 1,300 | 1,300 | 1,300 |
| Liberty Kenya (LBTY) | 3,100 | 3,200 | 3,400 | 3,500 |
| Britam (BRIT) | 1,200 | 1,400 | 1,500 | 1,700 |
Most contracts saw increases, with some of the largest hikes observed in Kenya Power (+2,200 to +2,400 across maturities), the NSE 25 Index (+1,000 to +1,500), and Safaricom (+900 to +1,100) compared to the previous review.
About NSE Derivatives (NEXT)
Launched in July 2019, the NSE Derivatives Market (NEXT) is the first regulated derivatives platform in East Africa. It offers two main types of contracts:
- •Equity Index Futures: contracts based on the NSE 25 Share Index and NSE 10 Share Index.
- •Single Stock Futures (SSFs): contracts on selected high-cap, high-liquidity stocks such as Safaricom, Equity, KCB, EABL, and BAT Kenya.
The Capital Markets (Derivatives Markets) Regulations, 2015 govern the market, with NSE acting as the central counterparty (CCP) through its clearing house. This structure allows traders to enter and exit contracts before maturity while ensuring counterparty risk is managed via daily margining, settlement guarantee funds, and investor protection funds.
Contract sizes are standardized based on share prices: 1,000 shares per contract for stocks under KES 100 and 100 shares for those above. Price movement is capped at 10% daily unless otherwise directed.
The exchange is also preparing to introduce options derivatives as the next phase of its growth strategy.
