Elijah Ntongai, an editor at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan, African, and global trends.

The Nairobi Securities Exchange (NSE) has announced that five Kenyan companies will be available for trading as single stock futures starting Monday, July 7, 2025.

In a market notice dated July 3, the NSE stated that it had approved the listing of five new single-stock futures.

Single stock futures (SSFs) are derivative contracts that allow investors to buy or sell a specific quantity of shares of a listed company at a predetermined price on a future date.

These instruments enable traders to speculate on the price movement of individual stocks or hedge their positions against potential losses.

NSE CEO Frank Mwiti lauded the approval as a move that will deepen the market options for investors at the Nairobi bourse.

"To deepen our market and expand investor opportunities, NSE will from this coming Monday, 7th July 2025, begin trading Single Stock Futures for (5) additional listed companies," Mwiti said on X.

The single stock futures will be traded on the NSE derivatives market and will have different initial margin requirements based on the contract expiry dates.

The initial margin is the minimum deposit a trader must provide to open a position in a futures contract. It acts as a security against potential losses.

Here are the initial margin requirements for each company and the contract expiry:

The NSE advised stakeholders to visit its derivatives portal for guidelines on calculating initial margins and further operational procedures. Enquiries can be directed to the derivatives support team via email at [email protected].

In other news, the Kenyan government is planning to list the Kenya Pipeline Company (KPC) through an Initial Public Offering (IPO).

During his visit to the London Stock Exchange, President William Ruto said that the government is broadening Kenya's stock market appeal to both local and international investors and has planned the privatisation of some state entities through initial public offerings at the NSE.

Ruto announced that the government is planning to list KPC through an IPO in 2025. Notably, KPC has paid KSh 12 billion in dividends to the National Treasury over the last year.

Source: TUKO.co.ke