Retail investors win big as Nairobi bourse drops 100 minimum shares
Business
By
Clare Ochieng and Macharia Kamau
| Jul 21, 2025
Retail investors at the Nairobi Securities Exchange (NSE) will, from August 1, be able to buy and sell shares in multiples of one as the market does away with the old rule that required investors to buy shares in lots of 100.
This is after the bourse received approval from the Capital Markets Authority (CMA) to amend the Equity Trading Rules, which restricted trading to 100 shares.
The new rule permits investors to trade shares up to a single unit. It seeks to draw more retail investors into the market.
Buying shares in blocks of 100 has, in the past, been cited as an entry barrier for many Kenyans. It has also kept many retail investors away from high-value stocks.
Head of Technical Services at the Kenya Association of Stockbrokers and Investment Banks (Kasib) Leah Maina said trading in smaller quantities could increase trading interest among retail investors.
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“The amendment allows for trading of securities in multiples of one share. As a result, the Odd Lot Board currently used for trading smaller quantities will be phased out,” she said.
“This change supports the NSE strategic plan, which focuses on revitalising the market through greater retail participation.”
NSE said the amendment allows for the trading of stocks in multiples of one share. “We listened carefully to feedback from our investors and stakeholders, especially on the need to make our stock market more accessible, inclusive and responsive to the realities of retail investors,” said NSE Chief Executive Frank Mwiti.
“The approval of single-share trading marks a significant milestone in democratising access to the capital markets. By phasing out the Odd Lot Board and allowing trading in multiples of just one share, we are removing barriers to entry and enabling every Kenyan — regardless of income level — to invest, build wealth and participate in the growth of our economy.”
NSE expects the move to deepen liquidity, adding that it directly supports the NSE 2025–2029 Strategic Plan.
The strategic plan looks to grow retail investors at NSE to nine million by 2029, an audacious target for a market that has about 1.6 million, but only less than 40,000 are active. Nine million investors would also mean about a third of Kenya’s working population participating in the market.
NSE also plans to list an additional 40 companies on the market as it seeks to expand investment opportunities.
The market is currently riding on a wave of resurgence after a multi-year period characterised by a lull. Last year, the NSE emerged as the best-performing market in Africa in dollar terms according to the Morgan Stanley Capital International Frontier Markets Index.
The momentum has carried into 2025, with the market’s key performance indicators showing continued growth. For the six months ended June 30, 2025, all major NSE benchmark indices posted double-digit growth, according to data by NSE. The NSE All Share Index, which tracks the performance of all listed companies, climbed by 22.41 per cent.
The NSE 20 Share Index rose by 18.54 per cent, while the NSE 10 Share Index and NSE 25 Share Index gained 14.28 per cent and 13.89 per cent, respectively.