Every shilling you pay in brokerage fees is a shilling you don’t compound.
In 2025, with 7% inflation and NASI up 46% YTD, Kenyans are finally jumping into the market, but many lose 20-40% of their first-year gains to avoidable costs.
Here’s the brutal truth: the average retail investor pays 1.2–2.0% round trip on every NSE trade (buy + sell). That’s KES 12,000–20,000 on a KES 1 million portfolio gone before you even blink.
But the smartest traders pay under 0.5%. Here’s exactly how the fees break down and how to slash them to the bone.
Full NSE Fee Structure (2025)
| Fee Type | Rate (2025) | Who Gets It | Typical Cost on KES 1M Trade |
|---|---|---|---|
| Brokerage Commission | 0.06% – 1.80% (negotiable) | Your broker | KES 600 – 18,000 |
| CMA Levy | 0.12% | Capital Markets Authority | KES 1,200 |
| CDSC Levy | 0.08% | Central Depository | KES 800 |
| NSE Transaction Levy | 0.02% | Nairobi Securities Exchange | KES 200 |
| Custody Fee (quarterly) | 0.10% – 0.20% p.a. | CDSC (via broker) | KES 250 – 500 / quarter |
| VAT on Commission | 16% of brokerage only | KRA | KES 96 – 2,880 |
| Total Round-Trip (Buy+Sell) | 0.38% – 4.32% | KES 3,800 – 43,200 |
2025 Broker Fee Comparison
| Broker | Equity Commission (Buy+Sell) | Min Per Trade | Custody (p.a.) | Notes / Best For |
|---|---|---|---|---|
| Faida Investment Bank | 0.75% total (0.375% each side) | KES 500 | 0.12% | Flat & transparent; great for <KES 2M |
| Sterling Capital | Tiered: 1.6% → 0.8% (volume) | KES 1,000 | 0.10% | Drops to 0.8% above KES 5M/month |
| AIB-AXYS Africa | 1.00% total | KES 1,000 | 0.15% | Good research; negotiable for >KES 10M |
| KCB Capital | 1.50% total | KES 1,500 | 0.12% | Free custody if >KES 5M portfolio |
| Dry Associates | 1.20% total | KES 2,000 | 0.10% | Best for day traders (fast execution) |
| Dyer & Blair | 1.80% total | KES 2,000 | 0.18% | Avoid unless you love their research |
| Genghis Capital | 1.40% total | KES 1,000 | 0.12% | Beginner-friendly app |
| NCBA Wealth | 1.20% total (online) | KES 1,000 | Free | Best overall for cost-conscious |
READ ALSO:How to Choose the Best NSE Mobile Trading App in 2025
Winner for most people in 2025 → Faida (0.75%) or NCBA Wealth (1.20% + free custody)
How to Save 20–50% on Fees Starting Today
- Trade in Bulks of KES 500K+ One KES 1M trade at Faida = KES 7,500 total fees Ten KES 100K trades = KES 15,000+ → you lose KES 7,500 to fees.
- Negotiate Hard Any broker will drop 0.2–0.5% if you commit KES 5M+ or KES 1M/month volume. Just email the CEO; it works.
- Choose Free/Cheap Custody NCBA Wealth, KCB Capital (for >KES 5M), and Standard Investment Bank now waive custody entirely.
- Use Online Platforms Only Phone or branch orders add 0.3–0.5% “advisory” fees. Stick to apps.
- Hold Winners Longer Turning KES 1M into KES 2M in 18 months at 0.75% fees = KES 15,000 cost Day trading 100 times = KES 150,000+ in fees → you need a 15% extra return just to break even.
Real-Life Example (KES 2M Portfolio)
| Strategy | Total Fees (1 Year) | Money Saved |
|---|---|---|
| Typical retail (1.8% + custody) | KES 72,000+ | — |
| Smart setup (Faida 0.75%, 4 trades) | KES 30,000 | KES 42,000 |
| Pro setup (Sterling 0.8%, volume discount) | KES 16,000 | KES 56,000 |
Bottom Line
In 2025 Kenya, the difference between a good and great investor is often just fees.
- Open with Faida or NCBA Wealth.
- Trade big chunks.
- Negotiate once you cross KES 5M.
- Hold winners and let compounding do the work.
Do this and you’ll keep 30–50% more of your gains than 95% of Kenyan investors.
Your future self (and your portfolio) will thank you.
Disclaimer: The content provided here is for educational and informational purposes only and does not constitute financial advice, investment advice, a recommendation, or an offer to buy or sell any securities or financial instruments. Always conduct your own research and consult a licensed financial advisor or investment professional before making any investment decisions. Past performance is not indicative of future results. Investing involves risk, including the possible loss of principal.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.
