The Nairobi Securities Exchange (NSE) is pushing for policy reforms aimed at lowering trading costs for small investors as part of a broader effort to deepen retail participation in Kenya’s capital markets.
- •Speaking during an interview on the Trading Bell show with Maina Chege, NSE Chairman Kiprono Kittony said the exchange is in discussions with the National Treasury of Kenya to waive or reduce levies and taxes on low-value trades that often discourage new investors from entering the market.
- •According to Kittony, current tariffs can disproportionately affect retail investors who trade with smaller amounts of capital.
“We’ve also discussed the waiver or reduction of tariffs and taxes on low-volume trades so that if you are investing 900 shillings and your tariffs are 200, you will ask yourself why you should even go in,” he said.
The proposed reforms are part of the exchange’s effort to make the stock market more accessible to ordinary Kenyans and remove barriers that have historically limited participation.
The NSE has in recent years focused on broadening the investor base beyond institutional and foreign investors. Local participation in the market has grown significantly, with domestic investors now accounting for roughly half of trading activity, compared with a much smaller share in previous years.
Technology has also played a key role in expanding access. The recent launch of the Ziidi Trader by Safaricom and Kestrel Capital have enabled younger and first-time investors to participate in the market with smaller investment amounts, demonstrating strong demand for simplified retail trading tools.
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