Average daily traded turnover in the market declined from Sh780 million in Q2 of 2018 to Sh539 million this year.
The fall in turnover is a threat to the revenue of market intermediaries who earn a commission on the trades handled.
Stockbrokers are allowed to charge up to 2.1 percent in commission per trade but trades are realistically charged a lower rate due to discounts and competition for business.
Turnover at the Nairobi Securities Exchange (NSE) fell by 30 percent to Sh32.9 billion in the second quarter of the year compared to a similar period in 2018 as tumbling share prices discouraged trading.
Market data compiled by Standard Investment Bank (SIB) shows the average daily traded turnover in the market declined from Sh780 million in the second quarter of 2018 to Sh539 million this year, with local participation in the market declining.
