How to Invest in the Nairobi Stock Exchange (NSE)
Fact-checked on
In this article
The Nairobi Securities Exchange (NSE), which many people still call the Nairobi Stock Exchange, is where shares of Kenya’s listed companies and many bonds are bought and sold. Whether you are a local or foreign investor, buying shares is easier than ever. Since 2025 you can even buy a single share, so you do not need a fat wallet to start.
Here is how to go about it.
What You Need
- National ID card or passport
- KRA PIN
- A recent passport-size photo
- Proof of address
- Bank account details (for receiving dividends and sale proceeds)
Your broker may ask for other “know your customer” details, so check their list before you visit.
Steps to Buy Shares on the NSE
- Do your homework. Before you put money into any company, research it. Look at:
- How big the company is (market capitalisation)
- Revenue, profit and margin trends
- Its competitors and industry
- Price-earnings (P/E), price-to-book and price-to-sales ratios
- Management and who owns the shares
- The balance sheet: assets, liabilities, total debt, long-term debt and debt-to-equity ratio
- Share price history and dividend history
- Plans to issue new shares (which can dilute your stake)
- The company’s outlook and risks, such as new laws or court cases. Think through the worst-case scenario.
You can find market data and investor education on the NSE website. Listed companies also publish annual reports and results in the investor section of their websites. See our list of NSE listed companies.
- Choose a licensed stockbroker or investment bank. In Kenya you buy and sell shares through a broker licensed by the Capital Markets Authority (CMA). Check the CMA’s list of licensees and pick a firm with a good online or mobile trading platform, responsive customer care and clear fees. See our list of Kenyan stock brokers.
- Open a CDS account. All listed shares are held electronically in a Central Depository and Settlement Corporation (CDSC) account, also called a CDS account. Your broker opens it for you when you submit the documents above. Many brokers now let you do this fully online. See our guide on how to open a CDS account.
- Fund your trading account. Deposit money with your broker by bank transfer or the payment methods they offer.
- Place your order. Tell your broker (or use their app) which shares you want, how many and the price you are willing to pay. Once the trade goes through, the shares appear in your CDS account.
- Keep track. Check your CDS statement from time to time to confirm your holdings.
Tips and Warnings
- You can buy a single share. In 2025 the NSE changed its trading rules so the minimum board lot is one share, and the old Odd Lot Board was scrapped. All orders now go through the main order book.
- Trading hours. The market trades Monday to Friday, except public holidays. Continuous trading runs from about 9:30 a.m. to 3:00 p.m., after a short pre-open session. Confirm current session times on the NSE website.
- Costs. Each trade attracts a broker commission plus statutory levies (NSE, CMA, CDSC and investor compensation fund). The total is a little over 2% of the value for small trades and lower for bigger ones. Ask your broker for their current fee schedule before you trade, as levies are reviewed from time to time.
- Dividends are paid to the bank account (or other payment option) you registered, not to your trading account. Keep your details up to date.
- Shares can go down as well as up. Only invest money you can afford to leave for a while, and spread it across several companies.
- Be wary of anyone promising guaranteed returns. Deal only with CMA-licensed firms.
