Nairobi Securities Exchange Targets 9 Million Retail Investors in Five-Year Growth Plan
Nairobi Kenya:
The Nairobi Securities Exchange (NSE) has set an ambitious target to bring in 9 million retail investors over the next five years. The plan, launched in early 2024, seeks to revive activity in the stock market by making investments more accessible to ordinary Kenyans and the diaspora.
Currently, out of the 1.5 million trading accounts registered at the NSE, 97.5% remain inactive. To reverse this trend, the exchange is introducing several new measures aimed at attracting and retaining individual investors.
Key Strategies to Boost Participation
One of the major changes is fractional trading, which will allow investors to buy portions of shares instead of whole units. This move is expected to make investing in stocks more affordable, especially for those with limited capital.
The NSE is also expanding its range of investment products. New options such as Exchange-Traded Funds (ETFs) and a broader selection of single-stock trading choices will be introduced to provide more opportunities for investors.
Additionally, the exchange plans to create an agency network across Kenya and beyond. This will help in onboarding new investors and offering them support throughout their investment journey.
Market Performance and Growth
The initiative comes at a time when Kenya’s stock market is experiencing renewed momentum. In the ten months leading up to October 2024, investor portfolios at the NSE grew by KSh 419.5 billion, reflecting a surge in market activity.
The bond market has also seen significant growth. The secondary bond market turnover more than doubled, crossing the KSh 1 trillion mark. Bond trading volume increased by an impressive 139.8%, rising from KSh 644 billion in 2023 to KSh 1.544 trillion in 2024.
A Robust Growth
By modernizing market infrastructure and introducing new products, the NSE aims to attract a wider range of investors. Lowering the entry barriers and offering more investment choices will help make the financial market more inclusive and dynamic.
For retail investors looking to take advantage of these changes, now is the time to explore investment opportunities.
Visit muiaa.com to learn more about how you can grow your investments in this expanding financial landscape.
