Every time you buy or sell shares on the Nairobi Securities Exchange, part of your money goes to fees. They are small on a big trade and surprisingly large on a small one. Knowing them before you trade stops a good investment turning into a loss on paper.
The charges on every NSE trade
Each buy and each sell carries the same set of charges.
1. Brokerage commission
What your stockbroker charges to place the trade. It varies by broker — commonly around 1% to 1.5% of the trade value for retail investors. Some brokers also set a minimum commission per trade (for example KES 100), whatever the size of the order.
2. Tax on the commission
Since the Tax Laws (Amendment) Act 2020, brokers charge VAT on their commission — now 16%. It applies only to the broker’s fee, not to the whole trade, and shows as its own line on your contract note.
3. Statutory levies
Fixed percentages of the trade value, the same at every broker:
- NSE transaction levy: 0.12%
- CMA levy: 0.08%
- CDSC levy: 0.08%
- Investor Compensation Fund (ICF): 0.01%
Together that is 0.29% of every trade.
4. Stamp duty
A small flat charge — KES 2 for every KES 10,000 (or part of it) of trade value.
Rates as published in February 2026. Your broker’s contract note — the receipt you get after each trade — shows the exact charges applied to you, and is the figure to trust.
Worked examples
Buying KES 10,000 of shares at 1.5% commission
| Charge | Amount (KES) |
|---|---|
| Commission (1.5%) | 150.00 |
| VAT on commission (16%) | 24.00 |
| Statutory levies (0.29%) | 29.00 |
| Stamp duty | 2.00 |
| Total | 205.00 (2.05%) |
So KES 10,000 of shares costs you about KES 10,205.
The same trade at 1% commission
Commission KES 100, VAT KES 16, levies KES 29, stamp duty KES 2 — KES 147, or 1.47%. A lower commission saves real money if you trade often.
A very small trade: KES 1,000 with a KES 100 minimum commission
Commission KES 100 (the minimum), VAT KES 16, levies KES 2.90, stamp duty KES 2 — KES 120.90, or about 12%. That is why very small trades rarely make sense at a broker with a minimum fee.
How much does a share need to rise before you make money?
Because you pay charges when you buy and when you sell, a share has to rise just to get you back to where you started:
- At about 2% per side, the price needs to rise roughly 4.2% before you break even.
- At about 1.5% per side, roughly 3%.
This is the most important number for anyone tempted to trade in and out quickly. Frequent trading on the NSE is expensive; buying good companies and holding them keeps costs low.
Are there other costs?
- Account fees. Ask your broker whether they charge any account-opening, annual or inactivity fee before you sign up.
- Withdrawal charges. Moving money out by M-Pesa or bank transfer may carry the usual transaction charges.
- Tax on dividends. Dividends are paid after a 5% withholding tax for Kenyan residents — see dividends in Kenya.
- No capital gains tax on listed shares. Gains on shares listed on the NSE are currently exempt from capital gains tax.
How to keep your trading costs down
- Compare commission rates between brokers — including the minimum charge. Ipahco’s broker directory is a good place to start.
- Trade less often, in larger amounts. One KES 20,000 purchase costs far less in fees than twenty KES 1,000 purchases.
- Use limit orders so you don’t overpay on a share with few sellers.
- Hold for the long term. Every sale you don’t make is a round of fees you don’t pay.
- Track your real cost. Record the full amount from your contract note, fees included, so your gain or loss is honest. Ipahco’s portfolio tracker lets you enter fees as part of your cost per share.
Frequently asked questions
Do I pay fees when I buy and when I sell?
Yes. The same set of charges applies to both.
Is the brokerage fee the same at every broker?
No. Commission and minimum charges vary between brokers. The statutory levies and stamp duty are the same everywhere.
Why is my cost per share higher than the price I bought at?
Because the fees are part of what you paid. Divide the total on your contract note by the number of shares to get your true cost per share.
Does Ziidi Trader charge the same fees?
Ziidi Trader bundles everything — commission, levies and stamp duty — into a single charge of about 1.5% per trade, and moving money between M-Pesa and Ziidi is free. The app shows the exact charge before you confirm. See Ziidi Trader vs a stockbroker account.
Fees change from time to time, so always check your broker’s current schedule and contract note. This guide is for education only and is not investment advice.
