The Nairobi Securities Exchange (NSE) has announced significant adjustments to its initial margin requirements for single stock and index futures contracts, in a move aimed at strengthening market stability and aligning investor obligations with current volatility levels.
The changes, outlined in a market notice dated 18 September 2025, will take effect from Friday, 19 September 2025, and impact contracts expiring between December 2025 and September 2026. Investors trading futures on blue-chip stocks such as Safaricom, KCB Group, Equity Bank, and British American Tobacco Kenya will be required to commit higher collateral amounts to initiate positions.
The revised structure shows Safaricom Plc (SCOM) will see its initial margin requirement increase from KSh 3,700 for December 2025 contracts to KSh 4,600 for September 2026 contracts. Similarly, KCB Group Plc’s requirement will rise from KSh 6,700 to KSh 8,000 over the same period, while Equity Group Holdings Plc will move from KSh 6,600 to KSh 7,900.
British American Tobacco Kenya (BATK) futures will also require more capital, with initial margins climbing to KSh 6,800 by September 2026. East African Breweries Ltd (EABL) and ABSA Bank Kenya Plc are also among the firms with upward adjustments.
The NSE said the revisions were based on routine risk assessments and volatility monitoring, ensuring market participants have adequate collateral to cushion against price swings.
Index futures were not left out of the review. The NSE 25 Share Index (N25I) will see its initial margin increase from KSh 23,900 in December 2025 to KSh 31,800 by September 2026. The Mini NSE 25 Share Index (25MN), designed for smaller investors, will rise from KSh 2,300 to KSh 3,100 across the same period.
The Mini NSE 10 Share Index (10MN) also experienced a modest rise, moving from KSh 1,000 in December 2025 to KSh 1,300 in September 2026.
These adjustments reflect the NSE’s commitment to enhancing investor protection while deepening Kenya’s derivatives market, which has grown steadily since its launch in 2019.
While most firms recorded increases, a few counters such as Liberty Kenya Holdings Ltd (LBTY) and Britam Holdings Plc (BRIT) saw marginal reductions in their margin requirements in earlier reviews, offering some relief to investors in the insurance sector.
The Co-operative Bank of Kenya Ltd (COOP) recorded a modest increase from KSh 2,800 to KSh 3,200 by September 2026, while Standard Chartered Bank Kenya (SCBK) rose from KSh 4,900 to KSh 5,600. KenGen and Kenya Power futures also saw higher collateral requirements, reflecting volatility in the energy sector.
According to the NSE, clients with existing positions set to mature in December 2025, March 2026, and June 2026 will either receive margin refunds or be required to top up their accounts depending on the revised rates.
Investors and trading members have been urged to review the updated operational procedures and margin calculation guidelines available on the NSE’s official website. Queries can also be directed to the derivatives desk at derivatives@nse.co.ke
The derivatives segment, known locally as NEXT (NSE Derivatives Market), has been one of the exchange’s fastest-growing products. It provides investors with opportunities to hedge, speculate, and diversify beyond traditional equities and bonds.
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