Summary:
The Nairobi Securities Exchange (NSE) has announced a game-changing shift in its trading rules that will allow investors to trade shares in single units starting August 8, 2025. The move eliminates the Odd Lot Board and aims to democratize stock market access by lowering barriers for small-scale investors.
The Nairobi Securities Exchange (NSE) has announced a landmark policy reform that will allow shares to be traded in single units, beginning August 8, 2025. This shift marks a major departure from past rules that required trades in standard lot sizes, often excluding many retail investors from active participation.
The single-unit trading initiative follows recent amendments to the NSE Equity Trading Rules, and is part of broader reforms designed to enhance financial inclusion, according to the exchange.
In a press release on Monday, July 29, NSE Chief Executive Officer Frank Mwiti confirmed the change, calling it a strategic milestone for Kenya’s capital markets.
“We are pleased to take this significant step towards enhancing retail investor participation in our market,” said Mwiti. “This initiative is part of our broader strategic efforts to increase financial inclusion and market access for all investors. It aligns with our vision of increasing the number of active investors to 9 million by the year 2029.”
What’s Changing
- Shares will now be tradable in multiples of one unit instead of the previous lot size requirements.
- The Odd Lot Board—previously used for trades below 100 shares—has been eliminated.
- All market orders, regardless of quantity, will be executed on the Main Order Book.
- Under Rule 7.6.6, the daily closing price of a listed equity will only be based on sessions where at least 100 shares were traded. If fewer shares are traded, the previous day’s average closing price will be used instead.
Why It Matters
The move aims to remove entry barriers for small-scale investors who previously struggled with high minimum trade sizes. It aligns Kenya’s trading environment with global best practices, where fractional and single-share investing has already proven successful in expanding market participation.
This reform is part of NSE’s wider effort to democratize wealth creation by encouraging a culture of long-term investing among Kenya’s general population.
Market analysts suggest that easier access to equities could lead to increased retail trading volumes and deepen the local investor base.
Outlook and Vision
With Kenya’s retail investing culture still in its growth phase, the NSE’s single-unit trading policy could prove transformational. It offers ordinary citizens a realistic entry point into the world of stock ownership, encouraging long-term savings and wealth accumulation through capital markets.
Frank Mwiti also hinted at future innovations, saying the exchange is committed to leveraging technology and policy to increase market vibrancy and investor confidence.
“Our ambition is to transform the NSE into a globally competitive platform where every Kenyan, regardless of income level, can invest, grow, and prosper,” he added.
