Are single-share trades the financial inclusion breakthrough Kenya needed?
By Faith Lagat, July 20, 2025In a bold move toward financial inclusion, the Nairobi Securities Exchange (NSE) will allow investors to buy and sell single shares starting August 1, 2025.
The announcement, made by NSE Board Member Frank Mwiti via X on July 19, signals a major shift in Kenya’s capital markets.
“We listened and acted. You can now buy a single share of stock at the NSE starting August 1,” Mwiti posted. “Stocks will now trade in multiples of one, phasing out the Odd Lot Board. Also, closing prices will only count if at least 100 shares are traded in a session. Welcome to the era of a more inclusive NSE.”
The policy is being hailed as a financial game-changer, designed to lower long-standing barriers that have kept many Kenyans from participating in the stock market.
But in a country facing high inflation, soaring food prices, and shrinking disposable income, some are asking: will this truly democratise investing, or is it just a well-meaning but insufficient step in a much bigger economic puzzle?
More accessible, but not for everyone
For years, retail investors in Kenya have struggled to access the stock market due to prohibitive lot-based trading rules. Typically, shares had to be purchased in bundles of 100 or more—making the market a playground for institutional investors and the wealthy. The Odd Lot Board, which allowed small trades, often came with wider bid-ask spreads and less favourable pricing.
By eliminating lot restrictions, the NSE is inviting ordinary Kenyans to participate on equal footing with big players. For example, with a single share of Safaricom trading at around Ksh 15-20, a first-time investor can now get started with just Ksh 20, instead of Ksh 2,000 for a 100-share lot. The move aligns with the NSE’s 2025–2029 strategic plan, which prioritises growing retail participation to revitalise the market.
This policy shift also dovetails with Kenya’s increasingly digital financial ecosystem. Platforms like NSEasy, accessible through the USSD code *66544#, allow Kenyans to open Central Depository System (CDS) accounts using just their ID numbers and trade via mobile phones. With mobile money driving 79% of financial account ownership in Kenya, according to the World Bank, single-share trading is tapping into an already thriving digital finance culture.
Analysts believe this could boost market liquidity and bring in new, younger investors. It may also foster a culture of saving and wealth creation, especially for Kenyans who’ve historically viewed the stock market as out of reach. For someone with Ksh 100, buying shares of a blue-chip company like Equity Bank or KCB could now be a realistic first step toward long-term financial growth.
The timing seems right. Despite global headwinds, Kenya’s economy grew 5.6% in 2024, signalling resilience. Lowering the entry barrier to investing aligns with the government’s Vision 2030 goals of promoting shared prosperity and reducing inequality.
Stability or setback?
Alongside single-share trading, the NSE is introducing a new rule: for a stock’s end-of-day closing price to change, at least 100 shares must be traded during the session. If this threshold isn’t met, the previous day’s closing price will carry over.
This rule is intended to enhance price stability, aligning with global standards that prevent a handful of small trades from distorting market sentiment. It’s meant to reflect genuine demand and supply, especially for high-volume stocks like Safaricom or Equity Bank, where thousands of shares change hands daily.
However, the policy could unintentionally create new challenges for small investors and low-volume stocks. For less liquid counters, where daily trades often don’t meet the 100-share mark, the carryover of prices may confuse retail investors who rely on up-to-date price information. This could make it harder to judge when to buy or sell, reducing transparency for the very people the NSE hopes to attract.
Market experts warn that while the new rule supports stability in blue-chip stocks, it could marginalise smaller listed companies, discouraging retail participation in those counters. For a policy aimed at boosting inclusion, this presents a paradox: small investors may get easier access but not always accurate pricing.
Structural barriers remain
Even with single-share trading in place, Kenya’s broader economic realities may dampen the policy’s impact. Inflation remains high, driven by global commodity shocks, a historic drought, and surging fuel prices. The World Bank reports that Kenya’s debt servicing consumes 60% of government revenues, crowding out private sector growth and leaving many households strapped for cash.
In this environment, even Ksh20 for a single share might be a luxury. For families struggling to afford school fees, rent, or daily groceries, investing in stocks may not be a priority, regardless of accessibility.
Financial inclusion gaps also persist, especially among rural populations, women, and low-income groups. According to the 2021 FinAccess survey, while mobile money usage is high, stock market participation is still limited by low financial literacy and lack of awareness. A rural farmer or small business owner may have access to NSEasy but might not feel confident navigating stock purchases or understanding market risks.
The NSE has urged potential investors to research companies before trading, but without widespread financial education, this advice may fall flat. For single-share trading to truly work, Kenya needs robust financial literacy programmes, targeted outreach in underserved communities, and transparent market practices that build trust.
The bottom line
Single-share trading is a bold and welcome step toward democratising Kenya’s capital markets. It has the potential to transform how ordinary Kenyans engage with wealth creation, especially in a digital-first economy. But on its own, it won’t fix the deeper structural issues that limit participation—from economic hardship to financial illiteracy.
For this policy to succeed, the NSE and policymakers must go beyond access. That means investing in education, protecting small investors, and creating an ecosystem where even the most marginalised Kenyans can confidently build wealth, one share at a time.
Without that, the risk is clear: single-share trading could become a symbolic gesture—more headline than solution.