NSE Opens Trading Floor to Teens in Financial Literacy, Investor Empowerment Drive

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The Nairobi Securities Exchange (NSE) Headquarters recently hosted a high-impact Teen Financial Literacy and Early Investor Empowerment Workshop, bringing together aspiring young investors aged 12–17.

The initiative was a collaborative effort between the NSE, Abojani Investment, and participating partner NCBA Investment Bank, aimed at fostering a culture of early investment and addressing the critical need for youth financial literacy.

The workshop provided a crucial platform for addressing the prevailing market challenge.

NCBA’s Samuel Gichohi, head of Business Development, noted, “The average age of investors currently engaging with the Nairobi Securities Exchange is between 40 and 50 years old. This generational gap means that if younger investors are not introduced to the market, the current system may face future significant challenges.”

Nancy Nasimiyu from Abojani commented,

“Youth entering the job market are often ‘a bit blank’ regarding money matters. We aim to show the younger generations the path to potentially becoming economically secure by the age of 18, simply by exploring budgeting, saving, smart spending and the basics of investing in the stock exchange”

The session focused on providing practical, simple concepts to help teens manage and grow their wealth, ensuring they transition from working for money to creating an investment portfolio where money works for them over time. Core financial 101 principles were covered, beginning with budgeting and learning how to create disposable income by managing money properly.

Key concepts taught included:

  • The 50/30/20 Rule: Students learned how to budget their income by dedicating 50% to needs, 30% to wants, and 20% to investment.
  • Emergency Fund Basics: Teens were instructed on the importance of setting aside a fund for tough times and emergencies, acknowledging that business involves both profits and losses.
  • Investment Fundamentals: Discussions covered how to earn interest (e.g., lending money to the government through government bonds) and how to earn dividends by holding shares in companies they are already familiar with. Furthermore, attendees learned about managing losses should asset prices decline.
  • Junior CDS Account as accessible tools: Attendees were encouraged to utilise custodial Junior CDS accounts to legally own shares under their guardianship as a way to grow the value of their money as they grow, leveraging the advantage of time to compound returns early.

The workshop offered a hands-on experience by taking teens to the NSE, allowing them to observe live trading and understand how their consumption contributes to shareholder wealth.

NCBA Investment Bank, a participating partner, utilised the platform to reinforce its commitment to shaping the next generation of financially confident young investors.

The bank is focused on showcasing its role in early financial empowerment and driving awareness of NCBA-led investment pathways, such as Junior CDS Accounts, which serve as accessible tools for young investors to start building wealth early with professional guidance.

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