The Nairobi Securities Exchange (NSE) has modified its trading rules regarding the minimum number of shares allowed for trading.
The bourse removed the board lot of 100 shares after receiving approval from the Capital Markets Authority (CMA), enabling investors to trade in multiples of one share starting August 1, 2025.
100-share minimum rule
Under the 100-share minimum rule, many small investors were locked out, especially from high-priced stocks such as BAT, Standard Chartered, and Kakuzi. The rule discouraged portfolio diversification, as low-income investors could only afford very few companies, exposing them to a greater risk.
The rule also acted as a barrier to aspiring retail investors. Newbies often want to start with small amounts to learn. The 100-share minimum rule has long acted as a barrier to financial inclusion.
Multiples of single share
The new rule will lower the barrier to entry, allowing more Kenyans to start investing regardless of their level of income. In addition, the multiples of single share trading will boost liquidity, making it easier to buy or sell shares.
The amendment is also set to boost retail investor participation, making it easier for youth and low-income earners to enter the stock market. “This change supports the NSE 2025-2029 strategic plan, which focuses on revitalizing the market through greater retail investor participation,” the Kenya Association of Stockbrokers and Investment Banks(Kasib) said in a post on social media X.
Investors are also expected to enjoy diversification of their portfolios. This will lead to reduced risk. Also, the rule aligns the bourse with the global standards, where most markets allow odd-lot trading.
Also Read: NSE New ETF Trading Connects Kenyans to Global Markets.
