Market Notice Reference: 001DER/NSE/2021 Market: Derivatives Date: 10Th March 2021 SUBJECT: INITIAL MARGIN REQUIREMENTS for EQUITY FUTURES

Market Notice Reference: 001DER/NSE/2021 Market: Derivatives Date: 10th March 2021 SUBJECT: INITIAL MARGIN REQUIREMENTS FOR EQUITY FUTURES

Dear NSE Stakeholder,

Please note the below Initial Margin requirements which will take effect on Friday, 19th March 2021:

Initial Margin Requirements – KES Contract Expiry Date Company 17-Jun-21 16-Sep-21 16-Dec-21 17-Mar-22 Safaricom Plc (SCOM) 3,800 4,200 4,600 5,000 KCB Group Plc (KCBG) 4,800 5,100 5,400 5,700 Equity Group Holdings Plc (EQTY) 4,700 5,100 5,400 5,700 ABSA Bank Kenya Plc (ABSA) 1,500 1,600 1,700 1,700 East African Breweries Ltd (EABL) 2,300 2,400 2,500 2,600 British American Tobacco Kenya Plc (BATK) 5,800 5,900 6,000 6,100 NSE 25 Share Index (N25I) 42,900 45,000 47,100 49,200

Changes in Initial Margin Requirements Since Last Review Contract Expiry Date Company 17-Jun-21 16-Sep-21 16-Dec-21 Safaricom Plc (SCOM) 100 200 200 KCB Group Plc (KCBG) (300) (300) (400) Equity Group Holdings Plc (EQTY) (200) (100) (200)

ABSA Bank Kenya Plc (ABSA) (100) (100) (100) East African Breweries Ltd (EABL) (100) (100) (200) British American Tobacco Kenya Plc (BATK) 800 800 900

NSE 25 Share Index (N25I) 700 800 1,000 *Note: Increase/(Decrease)

Clients with existing June 2021, September 2021 and Dece 2021 positions will receive initial margin refunds or will be required to top up their accounts to reflect the new rates above.

A guide to the calculation of the initial margin is available at: https://www.nse.co.ke/next-document-library/operational-procedures.html

Should you have any queries regarding this notice, please contact: [email protected]

This market notice will be available at: https://www.nse.co.ke/next-document-library/next-notices.html

DERIVATIVES MARKET

DISCLAIMER: This announcement has been issued with the approval of the Capital Markets Authority pursuant to regulation 63(7) of the Capital Markets (Licensing Requirements) (General) Regulations, 2002. As a matter of policy, the Capital Markets Authority assumes no responsibility for the correctness of the information appearing in this announcement.