Kenya’s Derivatives Market Trading Hits New High in H1 2021

Trading at the Kenya's derivatives market hit a two-year high in the first half of the year as the value of securities traded rose to 148 million shillings

Surging derivatives trade on the Nairobi Securities Exchange in the first half of 2021 hit a two-year high, ‘steady growth since its launch”.

This translates to Ksh 148 million, a 668 per cent turnover gain over a similar period in 2020.  

NSE chief executive Geoffrey Odundo noted the improved trading at the segment demonstrates confidence in the market despite the COVID-19 disruption.

The derivatives market dubbed NEXT is only the second such market on the continent after South Africa. It was launched in 2019.

It enables investors to diversify their investments, manage risk, and deploy funds more efficiently. 

The Market consists of a Clearinghouse, Clearing members and Financial Institutions licensed by CBK), Trading members and Investment Banks), and Clients (Institutional and Individual Investors, Speculators, Hedgers, and Arbitrageurs). 

The Nairobi based derivatives market offers single stock futures and Index futures.