Record activity on the Nairobi Securities Exchange (NSE) derivatives market has triggered a fresh review of risk requirements across equity futures.
- •Turnover on the NSE NEXT platform reached KSh 140.9Mn in February 2026 from 40,250 contracts, the strongest monthly activity since the derivatives segment opened in July 2019.
- •The exchange will introduce revised initial margin requirements across major single stock and index futures from 20 March.
- •The margin review raises collateral requirements across several banking and large cap futures contracts.
February turnover rose from KSh 47.4Mn in January. Activity accelerated through late 2025 before the February surge. Turnover reached KSh 44.0Mn in September 2025, followed by KSh 31.9Mn in October, KSh 63.7Mn in November, and KSh 53.0Mn in December. The February figure now stands as the highest level recorded on the platform since launch.
Margin Reset
KCB Group futures require margins of KSh 925 for the June 2026 expiry rising to KSh 1,100 for March 2027. Equity Group futures require margins between KSh 875 and KSh 1,050 across the same contract cycle.
NCBA Group futures carry the highest requirement among bank contracts. Margins range from KSh 1,125 for June 2026 to KSh 1,400 for March 2027. Additional increases apply to ABSA Bank, East African Breweries, and BAT Kenya futures across upcoming quarterly expiries.
Several contracts record reductions. Safaricom futures decline by KSh 25 for the September and December 2026 expiries. KenGen futures fall by KSh 25 for June and September contracts. Liberty Kenya futures also record reductions across selected expiries.
Index futures margins also shift under the review. The NSE 25 index future requires KSh 30,700 for the June 2026 contract rising to KSh 40,900 for March 2027. Mini NSE 25 futures require margins between KSh 3,000 and KSh 4,000 depending on expiry.
| Contract | Jun 2026 Margin (KES) | Sep 2026 Margin (KES) | Dec 2026 Margin (KES) | Mar 2027 Margin (KES) |
|---|---|---|---|---|
| KCB Group | 925 | 975 | 1,050 | 1,100 |
| Equity Group | 875 | 950 | 1,000 | 1,050 |
| NCBA Group | 1,125 | 1,200 | 1,300 | 1,400 |
| ABSA Bank | 425 | 450 | 475 | 500 |
| East African Breweries | 500 | 550 | 575 | 600 |
| BAT Kenya | 775 | 800 | 800 | 825 |
| Safaricom | 425 | 450 | 475 | 525 |
| Co-operative Bank | 425 | 450 | 475 | 500 |
| Standard Chartered | 500 | 525 | 525 | 550 |
| NSE 25 Index Future | 30,700 | 34,100 | 37,500 | 40,900 |
| Mini NSE 25 Future | 3,000 | 3,400 | 3,700 | 4,000 |
NSE NEXT launched in July 2019 with index and single stock futures designed for hedging equity exposure and trading leverage on listed companies. The platform introduced exchange traded derivatives to Kenya’s capital markets with quarterly expiries in March, June, September, and December.
Trading activity remained limited during early years. Monthly turnover often stayed below KSh 20Mn while the market built participation. Activity later improved during 2021 when turnover reached KSh 50.8Mn in June of that year. Volumes eased again during 2022 and 2023.
Recent data signals renewed momentum. Turnover expanded during the final quarter of 2025 before reaching the February record. The surge in contracts traded indicates rising use of futures for portfolio hedging and directional trading.
The margin adjustments will apply to open positions in June, September, and December 2026 contracts. Traders holding positions across these cycles will receive margin refunds or post additional collateral as accounts align with revised risk parameters.
