NSE (Nairobi Securities Exchange) has announced the launch of Options on Single Stock Futures (SSF) contracts for Safaricom, KCB Group, Equity Group Holdings, Co-operative Bank of Kenya, I&M Holdings and Kenya Electricity Generating Company (KEGN). The Nairobi bourse will list options on single stock futures from Friday, 19-Jun-2026, on NSE NEXT.
NEXT is the Nairobi Securities Exchange (NSE) derivatives market that facilitates the trading of futures contracts in the Kenyan market. It was established as a result of increased integration of the Kenyan financial markets with international markets; increased volatility in asset prices in local and international financial markets; the need for more sophisticated risk management tools and strategies; and to broaden and deepen Kenyan financial markets.
According to the NSE, these contracts are priced via the Black-76 model with quarterly expiries on the third Thursday of March, June, September and December.
Settlement is cash-based through NSE Clear, with total market fees at 0.085% of nominal value across NSE Clear, clearing and trading members, the IPF levy and CMA fee.
In a statement, the Nairobi Securities Exchange said the launch of Options on Futures on NSE NEXT, will expand the range of investment and risk management tools available to market participants. The statement said further that this milestone marks another step towards building a deeper, more innovative and accessible capital market in Kenya, providing more ways to trade and grow.
Investors will have enhanced Risk Management; can hedge existing positions against short-term price volatility without selling their underlying shares, and can deploy more sophisticated trading strategies.
The introduction of options also enables strategies such as covered calls, protective puts, and directional trades with defined risk. Derivative products typically attract institutional investors, market makers, and active traders, potentially increasing liquidity in the underlying stocks.
Options markets often provide additional insights into investor expectations regarding future price movements and volatility, thus providing price discovery benefits.
The roll out signals continued development of Kenya’s capital markets, bringing the NSE closer to more advanced exchanges where derivatives play a significant role in portfolio management and risk transfer.
Analysts view this as a positive structural development for the NSE. While retail participation may initially be limited due to the complexity of options, the move broadens the market’s toolkit and strengthens its appeal to institutional and sophisticated investors.
Meanwhile, the Nairobi bourse has revised initial margin requirements for equity futures, effective Friday, 19-Jun-2026. BRIT posts the steepest rise, up to 16.7% across tenors, followed by COOP, SCBK, IMHP and KPLC. SCOM and NCBA see the largest cuts, down up to 11.1% and 6.25% respectively.
Also, at the close of trading at the NSE, the market closed on the green with the NASI index up 0.22%, the NSE 10 index edged 0.55%, the NSE 20 index rose 0.18% while the NSE 25 index rose 0.42%. The NSE market capitalization reached US $ 27.1 billion while turnover stood at KSh 1181.1million.
Foreign buys stood at KSh 366.5 million or 31.03% of the market while foreign sales were worth KSh 351.0million or 29.72% of the market.
NSE TOP GAINERS AND LOSERS
The top losers were led by Sanlam Kenya whose share price fell 8.6% to KSh 7.66, followed by Olympia Capital which shed 6.5% to KSh 6.58, Nation Media which declined 4.9% to KSh 12.75, Flame Tree Group which declined 4% to KSh 1.91 and Liberty Holdings whose share price fell 3.9% to close the day at KSh 9.36.
Leading movers included Equity Group, which traded 3,826, 700 shares at KSh 77.25 followed by Safaricom which moved 8,442,400 shares at KSh 31.75 per share, NCBA which sold 2,514,100 shares at a reduced price of KSh 88.00, KCB which moved 1,859,600 shares with its price declining 0.4% to 1,859,600 KSh 70.75; Coop Bank whose price fell by 1.7% to KSh 31.35 and moved 2,346,300 shares and Stanbic Holdings whose price rose 0.1% to KSh 290 and moved 166,500 shares.
Top gainers were led by Uchumi, which rose 7.3% to KSh 1.90, followed by WPP ScanGroup, which was up 6.4% to KSh 2.15; Eaagads which was up 5.5% to KSh 32.80; Serena which was up 4.3% to KSh 15.75 and EAPCC which rose 3.5% to close the day at KSh 80.50
ALSO READ: NSE Chief Executive Frank Mwiti joins Board of Association of Futures Market(AFM)
Leave a comment