KENYA: NSE to Launch Day Trading

Wednesday December 15 2021

The Nairobi Securities Exchange (NSE) announced that it has launched day trading, as part of NSE’s strategy to enhance market liquidity following approval from the Capital Markets Authority (CMA) on 26^th October 2021. Day trading refers to the practice of purchasing and selling a security within a single day or trading session or multiple times over the course of the day.

The NSE currently has 65 listed securities on the trading system and all investors who currently have accounts at the Central Depository System (CDS) are able to take part in day trading.

In order to encourage day trading and complement this milestone, the NSE Board approved an incentive structure whereby investors who participate in day trades will receive a 5% discount on subsequent trades. These are levied at 0.114%, compared to normal trades which are levied at 0.12%. This benefit is enjoyed by the investor directly through their trading accounts.

The NSE has been at the forefront of innovations with initiatives such as the Ibuka program for the growth of Small, Medium and Micro Enterprise Businesses; the M-Akiba Bond for mobile trading of Government Bonds by retail investors; Real Estate Investment Trusts for the development of the real estate industry in Kenya; the Unquoted Securities Platform a market infrastructure that facilitates the trading, clearing and settlement of securities of unquoted companies in Kenya; and NSE’s recent partnership with Safaricom to enable customers to invest using ‘Bonga Points’.

These initiatives have not only increased retail participation and enhance liquidity at the NSE but have also earned NSE the recognition of Africa’s second most innovative exchange after South Africa.

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