NSE Increases Margin Levels for Derivatives Contracts
NSE has raised initial margin requirements on equity futures under its NEXT derivatives market effective 19 September 2025, tightening risk controls as the market matures...
✨ Key Highlights
The Nairobi Securities Exchange (NSE) has increased initial margin requirements for several single stock and index futures within its derivatives segment (NEXT), effective September 19, 2025, to enhance risk management.
- The new rates apply to all contracts from December 2025 through September 2026, requiring traders to adjust their accounts.
- Significant margin hikes include Kenya Power (up to KES 2,400), the NSE 25 Index (up to KES 1,500), and Safaricom (up to KES 1,100).
- NEXT, launched in July 2019, offers Equity Index Futures and Single Stock Futures, governed by the Capital Markets (Derivatives Markets) Regulations, 2015, with the NSE acting as the central counterparty.
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Reports and Rule Changes Highlight Kenyan Investment Trends and Financial Oversight - September 2025
A report indicates that wealthy Kenyans are increasingly investing in passion-driven assets like art and classic cars, signalling a shift from traditional real estate. In the formal market, the Nairobi Securities Exchange (NSE) has increased initial margin requirements for several single stock and index futures to enhance risk management, effective September 19, 2025. On the public finance side, it was revealed that Kenyan county governments operated 5,476 commercial bank accounts as of June 30. This is despite regulations requiring most funds to be held at the Central Bank. The practice raises concerns about fiscal control and complicates oversight, with Homa Bay, Kitui, and Nakuru counties owning the highest number of accounts.
