Global stock market indices provider Financial Times Stock Exchange (FTSE) Russell has upgraded Kenya’s Nairobi Securities Exchange (NSE) from Restricted to Pass on the Efficient Trading Mechanism category after the FTSE Equity Country Classification Interim Review in September 2025.
FTSE Russell uses the Efficient Trading Mechanism as one of the technical criteria to evaluate how well a country’s stock market functions. The mechanism assesses whether a trading system adheres to international best practices, including electronic order matching systems, transparent pricing, low transaction costs, minimal delays, efficient settlement systems, and the elimination of unnecessary barriers to trading shares.
The upgrade highlights the NSE’s improved trading infrastructure, increased efficiency, enhanced investor accessibility, and alignment with global standards. Effective August 1, 2025, the NSE paved the way for single-share trading, scrapping the minimum board lot of 100 shares. This reform played a key role in boosting the stock exchange’s efficiency, liquidity, inclusivity, and flexibility. Additionally, the adoption of the single-share trading rule positioned the Kenyan bourse for the landmark upgrade.
This FTSE Russell upgrade is a powerful endorsement of the modernization and reform agenda we’ve championed at NSE. It reflects our unwavering commitment to democratizing investment, boosting liquidity, and positioning Kenya as a globally competitive investment hub,” said Frank Mwiti, Chief Executive Officer of the NSE.
FTSE’s upgrade impact
The upgrade is set to strengthen investor confidence, attract foreign investors, and bolster Kenya’s position in global equity indices.
“The change also drives liquidity, creating deeper, more active markets that benefit all stakeholders. Most importantly, it aligns Kenya with global best practices, signaling to international investors that the country is ready for greater capital inflows and integration into the world’s leading investment ecosystems,” said the NSE in a statement.
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