The Nairobi Securities Exchange (NSE) has eliminated the long-standing minimum board lot of 100 shares, allowing securities to trade in multiples of just one share.
- •For decades, the 100-share threshold effectively locked out many retail investors, especially first-time and low-income participants.
- •With many stocks priced above KSh 10, the minimum investment required was at least KSh 1,000.
- •The introduction of single-share trading, as codified in Clause 6.3 of the revised Equity Trading Rules, significantly reduces this barrier:
6.3.1 The minimum board lot on the Normal Board shall be 1 security.
6.3.2 The minimum board lot on the Restricted Normal Board shall be 1 security.
6.3.3 The minimum board lot on the Recovery Board shall be 1 security.
This progressive change fosters greater market inclusivity, enabling more Kenyans to invest in stocks without prohibitive cost constraints.
“Stocks will now trade in multiples of one, and closing prices will only count when at least 100 shares trade in a session, marking a new era of inclusivity.”
Remarked NSE CEO Frank Mwiti via X.
The revised rulebook also includes provisions on new listings, with upcoming issuances such as the listing of Shri Krishana Overseas Limited (SKL) on 24th July 2025 benefiting from unrestricted price discovery on their first trading day:
7.7.1 There shall be no price spreads for a newly listed equity security during the open auction call.
7.7.2 The daily allowable price movement limits shall not apply on the first day of trading in a newly listed equity security.
ETF Pricing and Exemptions: ETFs, like the newly listed Satrix MSCI World Feeder ETF — which was listed on 16th July 2025 at KSh 761 per unit — follow special pricing rules designed to mirror global market prices while keeping trading fair for local investors.
5.10.4 An ETF may be exempted from Rule 5.10.1 if it is an offshore ETF, a commodity ETF, or a domestic ETF with constituent Fixed Income Securities.
5.10.5 Rule 5.10.1 also does not apply in cases of financial disclosures, first sessions ex-entitlement, securities dormant for over three months, or block trades.
5.10.6 Offshore ETFs follow intra-day price limits from their home jurisdictions adjusted for forex fluctuations.
7.8.1 The reference price for an ETF is based on the last traded price on the Normal Board.
These provisions ensure ETF prices remain aligned with global benchmarks while maintaining local market integrity.
Growing Market Accessibility and Liquidity
Market analysts anticipate these reforms will spur increased liquidity, particularly benefiting small-cap and previously under-traded stocks. The reforms also complement the rise of fintech platforms enabling micro-investing, round-up products, and fractional share ownership.
The adoption of single-share trading is a pivotal step in democratizing access to Kenya’s capital markets, encouraging broader participation, and positioning the NSE for stronger retail investor engagement.
