Kenya’s capital markets have witnessed a steady rise in the number of small retail investors over the past decade. Retail investors contribute to market breadth by expanding ownership and linking household savings to capital formation. Retail investors often operate with limited research coverage and uneven understanding of corporate fundamentals. Small retail investors are therefore necessary but not sufficient for deeper capital markets. Strengthening investor education, lowering transaction frictions, expanding product offerings, and improving disclosure standards would allow retail participation to evolve into a durable source of liquidity and resilience for the NSE.