There is no minimum amount to invest in the Nairobi Stock Exchange in terms of total value any one investor
The Nairobi Stock Exchange (NSE) is East Africa’s biggest stock market and provides an opportunity to invest in local companies. It is accessible to all and, open to domestic and foreign investors. The exchange lists shares from different sectors of the economy ranging from agriculture, telecommunications, banking and more. Through various brokers, the exchange is also accessible globally online for trading.
See: How to Buy Stocks Online on the Nairobi Stock Exchange
To ensure more efficient and easy trading in the exchange, the NSE has placed a cap on the minimum amount of shares and bonds that an investor can buy on the market. However, essentially an investor can buy as much or as little as they can afford. Thus, you do not need millions to invest – buy shares or bonds. It is also possible to invest as little as you have in pooled funds managed by money managers in the market.
Here is the minimum amount to invest in the Nairobi Stock Exchange(NSE) in bonds and shares:
Minimum Number of Shares
The minimum amount to invest in the Nairobi Stock Exchange per purchase or sale is in 100 share bundles. Shares are bundled and sold in 100 share lots and above in the main market boards. However, there are also shares sold in less than 100 share lots which are available on the odd lots board. Through the stock brokers, you can buy shares either in 100 share lots or in the odd lots.
For example:
If you choose to purchase KenGen shares which are currently trading at KES 6.45 per share (closing price on 23.09. 2018), with only KES 645, you will be able to own a piece of this company.
However, to own a piece of Williamson Tea, you’ll need a little more – KES 16,400 (closing price on 23.09. 2018), at the very least. Also, note that broker commissions and fees, which apply with every transaction.
Minimum Number of Bonds
The minimum amount to invest in the Nairobi Stock Exchange per transaction in terms of bonds is KES. 50,000. Bonds are sold and bought with a minimum investment of KES. 50,000.
However, for small investors without the minimum amount to invest, can pool their funds together and invest with the help of a money manager.
Final Thoughts
The lot bundles guide the transaction sizes limiting them to bundles of 100 shares or KES. 50,000 for bonds. Therefore, for every purchase or sale, the investor can only transact within these limits unless it is an odd lot. This has increased the efficiency of the market and eased trading.
Note, however, there is no minimum amount to invest in the Nairobi Stock Exchange in terms of total value any one investor can own.
Happy Investing!
Meanwhile, You can click on the following links to read more about investing:
- How to Buy Stocks Online on the Nairobi Stock Exchange
- 5 of the Biggest Investment Benefits of M-Akiba
- How to Build Wealth Rapidly
- 4 Painful Ways to Lose Money
Disclosure: This information is provided to you as a resource for informational purposes only. It is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal. This information is not intended to, and should not, form a primary basis for any investment decision that you may make. Always consult your own legal, tax or investment advisor before making any investment/tax/estate/financial planning considerations or decisions.